Dividend Calculator
Calculate your projected dividend income and growth over time.
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How Dividend Investing Works
Dividend investing is a strategy focused on buying stocks that pay regular dividends — cash payments from company profits distributed to shareholders.
What This Calculator Shows
Total Dividends — Total dividend income received over the entire period
Final Annual Dividend — Your projected annual dividend at the end of the period
Total Yield on Cost — Your cumulative dividends as a percentage of your original investment
The Power of Dividend Growth
Many quality companies increase their dividends every year. A stock with a 3% yield and 7% annual dividend growth will yield over 6% on your original cost after 10 years — and the income keeps growing.
Example
$10,000 invested in a stock with 4% yield and 5% annual dividend growth:
- Year 1 income: $400
- Year 10 income: $620
- Total dividends over 10 years: $5,156
Best Practices for Dividend Investors
Diversify across sectors — don’t concentrate in one industry
Look for companies with long dividend growth histories (Dividend Aristocrats)
Reinvest dividends early on to accelerate compounding
Monitor payout ratios — sustainable dividends typically have payout ratios below 60%