Alpha and Beta Calculator
Free alpha and beta calculator. Measure your portfolio's market sensitivity (beta) and excess risk-adjusted return (alpha) against a benchmark index.
Dividend Calculator
Project dividend income growth with DRIP reinvestment, monthly additions, and portfolio value. See yield on cost, income schedule, and total dividends.
Current Yield⧉
4.00%
Annual dividend ÷ current stock price
Year-1 Annual Income⧉
$240.00
100 shares × $2.40/share
Final Portfolio Value⧉
$141,644.19
1,077.4 shares at projected price
Total Dividends Received⧉
$53,008.80
Over 20 years of dividend payments
Final Monthly Income⧉
$571.74
Projected dividend income per month in final year
Yield on Cost⧉
12.71%
Final year dividends ÷ total invested capital
Income Growth Over Time
Yr 1
$348.92/yr
Yr 5
$937.80/yr
Yr 10
$2,048.38/yr
Yr 15
$3,802.54/yr
Yr 20
$6,589.55/yr
| Year | Shares | Div/Share | Annual Income | Yield on Cost | Portfolio Value |
|---|---|---|---|---|---|
| 1 | 143.2 | $2.52 | $348.92 | 4.15% | $8,936.58 |
| 2 | 186.4 | $2.65 | $476.80 | 4.41% | $12,099.33 |
| 3 | 229.8 | $2.78 | $616.79 | 4.67% | $15,507.57 |
| 4 | 273.3 | $2.92 | $770.03 | 4.94% | $19,182.40 |
| 5 | 317.1 | $3.06 | $937.80 | 5.21% | $23,146.83 |
| 6 | 361.3 | $3.22 | $1,121.49 | 5.50% | $27,425.97 |
| 7 | 405.9 | $3.38 | $1,322.61 | 5.80% | $32,047.23 |
| 8 | 451.1 | $3.55 | $1,542.87 | 6.12% | $37,040.56 |
| 9 | 496.9 | $3.72 | $1,784.11 | 6.46% | $42,438.68 |
| 10 | 543.6 | $3.91 | $2,048.38 | 6.83% | $48,277.35 |
| 11 | 591.1 | $4.10 | $2,337.93 | 7.22% | $54,595.68 |
| 12 | 639.6 | $4.31 | $2,655.23 | 7.63% | $61,436.46 |
| 13 | 689.1 | $4.53 | $3,003.04 | 8.07% | $68,846.50 |
| 14 | 739.9 | $4.75 | $3,384.37 | 8.55% | $76,877.07 |
| 15 | 792.0 | $4.99 | $3,802.54 | 9.05% | $85,584.32 |
| 16 | 845.6 | $5.24 | $4,261.26 | 9.60% | $95,029.76 |
| 17 | 900.8 | $5.50 | $4,764.58 | 10.18% | $105,280.84 |
| 18 | 957.7 | $5.78 | $5,317.00 | 10.81% | $116,411.53 |
| 19 | 1,016.5 | $6.06 | $5,923.49 | 11.48% | $128,502.95 |
| 20 | 1,077.4 | $6.37 | $6,589.55 | 12.20% | $141,644.19 |
Planning notes, formulas, and examples
About the Dividend Calculator
The Dividend Calculator projects dividend income over time using the inputs that actually drive it: share price, dividend per share, growth rate, reinvestment, and additional contributions.
It shows how annual income, yield on cost, and portfolio value change year by year, so you can compare cash-dividend and DRIP-style growth paths instead of estimating them by hand.
That makes it useful for checking how a dividend stock or ETF might contribute to long-term income goals under different growth assumptions.
When This Page Helps
Dividend projections are easier to think about when income growth, yield on cost, and reinvestment are laid out together. The calculator helps you compare the income path with and without DRIP so you can see how much the compounding is doing over time.
How to Use the Inputs
- Enter the current stock or ETF price.
- Enter the current annual dividend per share.
- Enter the expected dividend growth rate (check the stock's 5-year dividend growth history).
- Enter how many shares you currently own.
- Set the projection period in years.
- Choose whether to reinvest dividends (DRIP) or take them as cash.
- Set expected price growth, tax rate, and any monthly additional investment.
- Review income projections, yield on cost, and the yearly schedule.
Formula used
Dividend Yield = Annual Dividend / Stock Price × 100
Annual Income = Dividend Per Share × Shares Owned
Yield on Cost = Current Annual Income / Total Amount Invested × 100
With DRIP: New Shares = After-Tax Dividend / Current Price (added each year)Example Calculation
Result: $1,450/yr income in year 20
Starting with 100 shares at $60 ($2.40 dividend, 4% yield), with 5% dividend growth and DRIP enabled, annual income grows from $240 to approximately $1,450 by year 20. Yield on cost reaches ~14%.
Tips & Best Practices
- Focus on dividend growth rate, not just current yield — a 2% yield growing at 10% beats a 5% yield growing at 2% over time.
- Check the payout ratio — dividends above 80% of earnings are less sustainable.
- Start DRIP early to maximize the compounding effect.
- Use the yield on cost metric to track the real return on your invested capital.
- Diversify across sectors to reduce dividend cut risk.
What Drives Dividend Growth
Dividend income grows through three levers: a higher dividend per share, more shares owned through reinvestment, and extra capital added over time. The calculator keeps those levers separate so you can see which one contributes most to the projected income.
DRIP Versus Cash
Reinvesting dividends is usually the stronger compounding path when the goal is future income growth. Taking cash is still useful when the portfolio is intended to support current spending. Showing both modes makes the tradeoff easier to evaluate.
Looking Beyond Yield
Current yield alone does not tell the whole story. A lower-yield stock with faster dividend growth can eventually produce more income than a high-yield stock with little or no growth. That is why yield on cost and the income schedule matter in longer horizons.
Sources & Methodology
Last updated:
Methodology
This calculator projects dividend income year by year from the starting share count, annual dividend per share, assumed dividend-growth rate, assumed share-price growth, optional monthly additions, and an optional DRIP setting. Each yearly step applies dividend and price growth, adds the new capital contribution, estimates annual dividend income on the updated share count, and, when DRIP is enabled, converts after-tax dividend income into additional shares at that year's projected price.
The result is a scenario worksheet rather than a forecast of actual dividend policy or market pricing. The tax-rate field is a user-defined haircut used only to estimate how much dividend cash is available for reinvestment, not a complete tax calculation.
Sources
- Direct Investing (Investor.gov) — SEC investor education page covering direct stock purchase plans and dividend reinvestment plans.
- Dividend (Investor.gov) — Glossary definition of dividends and how distributions are paid to shareholders.
- Topic no. 404, Dividends (Internal Revenue Service) — IRS overview of dividend tax treatment, relevant to the worksheet's tax-rate input.
Frequently Asked Questions
Dividend Reinvestment Plan — dividends are automatically used to purchase additional shares instead of being paid as cash. Many brokers offer DRIP at no cost. That is what makes the compounding effect so powerful.
Yield on cost measures your annual dividend income relative to what you originally paid. As dividends grow, your yield on cost increases even though the current yield stays the same. It is a useful way to measure progress on the original investment.
Dividend Aristocrats (S&P 500 companies with 25+ years of increases) have averaged 6-10% growth. Slower-growing utilities average 3-5%. The right input depends on the company and sector.
Qualified dividends are taxed at 0-20% depending on income. Non-qualified dividends are taxed as ordinary income. DRIP does not defer taxes. The tax bill still exists even when shares are reinvested.
DRIP maximizes compounding if you don't need the income now. Take cash if you are in the distribution phase of retirement or need the income. The best choice depends on whether growth or cash flow matters more right now.
Neither is inherently better. Dividend investing provides stable income and lower volatility. Growth investing targets capital appreciation. Many investors use both, depending on time horizon and income needs.
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