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Dividend Yield Calculator
Income, Growth & Total Return

Calculate dividend yield, annual income, yield on cost, and projected growth with and without dividend reinvestment. Compare two stocks side by side.

Currency
💰
Dividend Yield Estimate
Stock A
$
Current market price per share.
$
Total annual dividend paid per share (sum all payments if quarterly/monthly).
#
$
Used to calculate yield on cost. Leave at 0 to skip.
Stock B (optional — for comparison)
$
$
#
Growth Assumptions
%
Expected annual increase in dividend per share. Use 0 for no growth.
yrs
🌿
DRIP compounds returns by purchasing additional shares with each dividend payment.
Dividend Yield — Stock A
—
annual dividend / current price
—
annual income from Stock A
Monthly Income (A)
—
per month
Yield on Cost (A)
—
based on purchase price
Total Investment (A)
—
shares × current price
Forward Yield (A)
—
after one year of growth
Payout Ratio Context
—
div per share / price
10-Year Total Income
—
with growth, no DRIP
3 Scenarios — 10-Year Projected Income
No Growth, No DRIP
—
flat dividend, cash out
Growth, No DRIP
—
dividend grows annually
Growth + DRIP
—
reinvested compounding
Stock A vs Stock B Comparison
Stock A
Share price—
Annual dividend—
Dividend yield—
Annual income—
Stock B
Share price—
Annual dividend—
Dividend yield—
Annual income—
Dividend Income Projection
Growth + DRIP
Growth, no DRIP
Flat, no DRIP
Year-by-Year Dividend Projection
Year Div/Share Shares Annual Income Cumulative (no DRIP) Cumulative (DRIP)
Note: This calculator models projected dividend income based on inputs you provide. It does not account for taxes on dividends, transaction costs, share price changes, dividend cuts, or currency fluctuations. Dividend growth rates are assumed constant. Past dividends do not guarantee future payments. This is not investment advice.
✦ Cal, AI Explanation
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Your dividend estimate is ready. Ask me about yield on cost, DRIP compounding, payout sustainability, or dividend growth investing strategies.

💰 Dividend Concepts

Dividend yield: annual dividend per share divided by current share price. A higher yield means more income per dollar invested.
Yield on cost: annual dividend divided by your original purchase price. Rises over time if dividends grow.
DRIP: Dividend Reinvestment Plan. Reinvesting dividends buys more shares, compounding future income.
Forward yield: projected yield based on next year's expected dividend, not the current one.
Payout ratio: dividends paid as a percentage of earnings. Very high ratios may signal unsustainability.

Related Calculators

Investment Growth→ Compound Interest→ ROI Calculator→ FIRE Calculator→

Related Guides

Dividend Investing Guide→ How Compound Interest Works→

How Dividend Yield Works

Dividend yield is the most commonly used metric to assess how much cash income a stock generates relative to its price. A stock paying $2 per share annually when its price is $50 has a yield of 4%. If the price rises to $100 without a dividend increase, the yield drops to 2%.

The Calculations

Dividend Yield = Annual Dividend Per Share / Current Share Price
Annual Income = Annual Dividend Per Share × Shares Held
Yield on Cost = Annual Dividend Per Share / Purchase Price Per Share
Forward Yield = (Annual Dividend × (1 + Growth Rate)) / Current Price
DRIP Shares Next Year = Shares × (1 + Dividend Per Share / Share Price)
DRIP compounding assumes dividends are reinvested at the current share price. Real DRIP plans may use slightly different pricing mechanisms.

Yield on Cost vs Current Yield

If you bought a stock at $30 and it now trades at $60 but still pays $2 per share annually, your yield on cost is 6.67% while the current yield is only 3.33%. Long-term dividend investors often focus on yield on cost as a measure of how their income stream has grown relative to what they originally paid.

DRIP Compounding

Reinvesting dividends automatically buys more shares, which generate more dividends, which buy more shares. Over a 20-year period, a stock with a 4% yield and 5% dividend growth can produce dramatically more total income with DRIP than without it — the compounding effect becomes significant after year 7 to 10.

Illustrative Dividend Income Scenarios

$10,000 invested at various yields, held for 10 years with 3% annual dividend growth and no DRIP. Income is cumulative over the period.

YieldYear 1 IncomeYear 10 Income10-Year Total
2%$200$261approx. $2,320
3%$300$391approx. $3,480
4%$400$522approx. $4,640
5%$500$652approx. $5,800
6%$600$783approx. $6,960

These are illustrative figures. Use the calculator above for your specific inputs.

Frequently Asked Questions

What is a good dividend yield?+
There is no universal answer — it depends on the market, sector, and your investment goals. In general, yields between 2% and 5% are considered healthy for established companies. Yields above 7% or 8% can signal that the share price has dropped significantly or that the dividend may not be sustainable. A growing dividend at a moderate yield is often more valuable long-term than a very high static yield.
What is yield on cost and why does it matter?+
Yield on cost measures your annual dividend income as a percentage of what you originally paid for the shares. If you bought shares at $20 and the company now pays $2 per share annually, your yield on cost is 10% even if the current yield (based on today's price) is lower. It shows the true income return on your original investment and is particularly useful for evaluating long-held positions.
How much does DRIP compound over time?+
Significantly. A $10,000 position at 4% yield with 3% annual dividend growth held for 20 years produces roughly $11,600 in cumulative dividends without DRIP. With DRIP, the cumulative income rises to approximately $15,000 to $17,000 depending on share price assumptions. The difference accelerates after year 10 as the compounding effect of additional shares paying dividends becomes material.
What is forward dividend yield?+
Forward yield is an estimate of next year's dividend divided by the current share price. It is useful when a company has announced a dividend increase or when analysts expect a change. This calculator applies your entered dividend growth rate to project one year forward. Forward yield is more useful than trailing yield when dividends are actively changing.
Does this calculator account for taxes on dividends?+
No. Dividend tax treatment varies significantly by country, account type, holding period, and individual circumstances. In many countries dividends are taxed at a different rate to capital gains. This calculator shows gross dividend income before any tax. Subtract your applicable dividend tax rate to estimate net after-tax income.