Dividend Calculator
Calculate your dividend income, see how reinvestment (DRIP) compounds your portfolio, and project passive income over time.
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Start Investing FreeHow Dividend Investing Works
Dividend investing means owning stocks or funds that pay regular cash distributions — typically quarterly — as a share of company profits. Your return comes from two sources: price appreciation (the stock grows in value) and dividend income (regular cash payments). Together these produce "total return." Historically, dividends have contributed roughly 40% of the S&P 500's total returns over long periods.
What Is DRIP (Dividend Reinvestment)?
A Dividend Reinvestment Plan (DRIP) automatically uses your dividend payments to purchase additional shares instead of paying them out as cash. This compounding effect is powerful over long periods — more shares means larger future dividends, which buy even more shares. Most brokerages offer free DRIP enrollment and can purchase fractional shares, so every dollar of dividends goes back to work immediately.
Dividend Yield vs. Dividend Growth
Dividend yield is the annual dividend divided by the current share price — it tells you your income today. Dividend growth rate is how fast the company increases its dividend each year. A 2% yield growing at 7%/year doubles your income every 10 years. High-yield stocks (6–8%) often have slow or no growth; lower-yield stocks (2–3%) with consistent growth frequently outperform over 20+ year horizons.