Dividend Calculator
Project current and future dividend income based on share count, dividend per share, and an expected dividend growth rate.
Results
What is it?
The dividend calculator projects both your current annual dividend income and your future income based on an expected dividend growth rate. It also computes yield on cost รขโฌโ the future dividend relative to your original purchase price รขโฌโ a key metric for income investors.
How to use
Enter the current share price, the annual dividend per share, the number of shares you own, the expected annual dividend growth rate, and the number of years to project. The calculator shows current yield, current income, and projected future income.
Example scenario
You own 500 shares at $120 each, paying $3.50 in annual dividends (2.92% yield). With 5% annual growth over 10 years, the future dividend per share rises to $3.50 รโ 1.05^10 รขโฐห $5.70, giving $2,850 annual income and a 4.75% yield on cost.
Pro tip
Reinvesting dividends (DRIP) to purchase additional shares creates a compounding effect that can dramatically accelerate portfolio growth over long time horizons.