Dividend Calculator
Calculate dividend income, yield, and growth over time with DRIP options
Results
Total Dividends
$0.00
Over 10 years
Final Yield
0.00%
Based on total investment
Final Shares
0.00
Including DRIP & additional investments
Understanding Dividends
What are Dividends?
Dividends are regular payments made by companies to shareholders from their profits. They represent a way for companies to share their success with investors and provide a steady stream of income.
Key Dividend Metrics
| Metric | Formula | Example |
|---|---|---|
| Dividend Yield | Annual Dividend per Share / Share Price × 100 | $2 dividend / $50 share price = 4% yield |
| Payout Ratio | Total Dividends / Net Income × 100 | $100M dividends / $400M net income = 25% payout |
| Dividend Growth Rate | (New Dividend - Old Dividend) / Old Dividend × 100 | ($2.20 - $2.00) / $2.00 = 10% growth |
Dividend Reinvestment (DRIP)
DRIP allows investors to automatically reinvest their dividend payments into additional shares of the stock. Benefits include:
- Compound growth over time
- Dollar-cost averaging
- Automatic investment
- Often commission-free
Dividend Investment Strategies
Dividend Growth Investing
This strategy focuses on companies that consistently increase their dividend payments over time:
- Look for companies with strong dividend growth history
- Focus on sustainable payout ratios
- Consider industry leaders with competitive advantages
- Monitor dividend coverage ratios
High-Yield Strategy
This approach targets stocks with above-average dividend yields:
- Research sustainability of high yields
- Analyze company financials carefully
- Consider sector-specific factors
- Diversify across industries
Dividend Tips
Best Practices
- Research dividend history and stability
- Consider tax implications
- Monitor payout ratios
- Diversify dividend sources
- Reinvest for compound growth
Warning Signs
- Unsustainably high yields
- Declining dividend growth
- High payout ratios
- Poor earnings coverage