Want to know how much income your investments could generate? This dividend investing calculator helps you visualize portfolio growth, reinvested dividends (DRIP), and passive income potential—giving you a clear path toward financial freedom.

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Why Dividends Matter for Long-Term Investors

Dividends are a portion of a company’s earnings paid out to shareholders—often quarterly. Over time, they can provide consistent passive income and significantly enhance total returns, especially when reinvested.

This calculator is designed to help you see the power of compounding, particularly when you turn on DRIP (Dividend Reinvestment Plan). With DRIP, your dividends automatically buy more shares, which then generate even more dividends—creating a snowball effect.

Key Terms Explained

• Dividend Yield: The annual income you receive from dividends, expressed as a percentage of the stock price. For example, a 5% yield means you earn $5 per year for every $100 invested.
• DRIP (Dividend Reinvestment Plan): Instead of taking your dividends in cash, you reinvest them to buy more shares, compounding your returns over time.
• Annual Contribution Growth: The percentage increase in your monthly investments each year. This reflects how your income (and ability to invest) might grow over time.
• Share Price Growth: Stocks don’t just pay dividends—they can grow in value too. This input lets you factor in capital appreciation alongside your income.
• Dividend Frequency: Companies pay dividends on different schedules—monthly, quarterly, or annually. This affects the compounding timeline.
• Dividend Tax Rate: The tax you pay on dividend income. Factoring this in gives you a more realistic after-tax projection.

Ready to start your dividend investing journey?

Use our stock broker matching tool – a free tool that helps you choose a platform that fits your investing style, location, and goals to start your dividend investing journey.