Dividend Calculator
🏠 Free ToolCalculate your projected dividend income from a stock or ETF portfolio. Enter portfolio value, dividend yield, growth rate, and time horizon to see annual and monthly income with optional DRIP reinvestment.
How it Works
Our dividend calculator projects your dividend income based on your portfolio value, dividend yield, expected growth rate, and investment horizon. Toggle between reinvesting dividends (DRIP) and taking them as cash to see the dramatic difference compounding makes.
The calculator shows your current annual and monthly dividend income, plus projections of how both your portfolio value and dividend payments grow over time. With dividend reinvestment enabled, your income compounds as reinvested dividends buy more shares that generate even more dividends.
The portfolio growth chart illustrates the difference between your initial investment and the total value after growth and reinvestment. This visual makes it clear why many long-term investors prefer dividend-paying stocks and ETFs as a wealth-building strategy.
Adjust the dividend yield and growth rate to model different scenarios. High-yield stocks (4-6%) provide more immediate income but may grow slower. Growth stocks with lower yields (1-2%) may offer better total returns over decades. A balanced approach often works best for most investors.
Frequently Asked Questions
What is dividend yield?
Dividend yield is the annual dividend payment divided by the stock price, expressed as a percentage. A €100 stock paying €4/year in dividends has a 4% yield. Higher yields mean more income but may signal higher risk.
What is DRIP (Dividend Reinvestment Plan)?
DRIP automatically reinvests your dividends to buy more shares instead of paying cash. This compounds your returns because you earn dividends on a growing number of shares, accelerating portfolio growth.
How much do I need for €1,000/month in dividends?
At a 4% yield, you need a portfolio of €300,000 to generate €12,000/year (€1,000/month). At 3% yield, you need €400,000. Higher yields are available but often carry more risk.
Are dividends taxed?
Yes, dividends are typically subject to income tax or capital gains tax depending on your country. Tax rates vary. This calculator shows gross (pre-tax) figures. Consult a tax advisor for your specific situation.
Should I reinvest dividends or take cash?
If you don't need the income now, reinvesting typically leads to much higher long-term returns due to compounding. If you're in retirement or need cash flow, taking dividends as income makes more sense.