Dividend Calculator
Calculate dividend income, yield and the power of dividend reinvestment (DRIP) over time.
Enter Details
Results
Related Calculators
Frequently Asked Questions
What is a good dividend yield?
A good dividend yield is typically 2-5%. Yields above 6-7% can signal risk — the stock price may have fallen sharply or the dividend may be unsustainable. Blue-chip dividend stocks (Dividend Aristocrats with 25+ years of increases) typically yield 2-4% with reliable growth.
What is dividend reinvestment (DRIP)?
DRIP (Dividend Reinvestment Plan) automatically reinvests your dividends to buy more shares instead of paying cash. Over time this creates compounding — more shares generate more dividends which buy even more shares. DRIP can dramatically increase total returns over 20-30 years.
Are dividends taxed?
Qualified dividends (from US stocks held over 60 days) are taxed at 0%, 15% or 20% depending on your income — much lower than ordinary income tax rates. Ordinary dividends (REITs, some foreign stocks) are taxed as ordinary income. Dividends in Roth IRA or 401k accounts grow tax-free.