Calculate dividend yield, annual income, and project future dividend growth with reinvestment options
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Want to know how much passive income your dividend stocks generate? Our calculator computes your dividend yield, annual income, and projects future growth with optional dividend reinvestment. Perfect for building a dividend portfolio.
Dividend yield measures annual dividends as a percentage of share price. A $50 stock paying $2/year has a 4% yield. Yield on cost shows your effective yield based on purchase price—if that stock rises to $100, your yield on cost remains 4% while current yield drops to 2%.
Dividend Yield Formula
Dividend Yield = (Annual Dividend / Share Price) × 100Calculate how much dividend income you need for retirement.
Compare yields across your dividend holdings.
See how dividend growth and reinvestment compound over time.
Generally, 2-6% is considered healthy. Below 2% may not provide enough income, while above 6% could indicate an unsustainable dividend or stock price decline. Quality matters more than yield.
Yield on cost is your effective dividend yield based on what you originally paid, not current price. If you bought at $50 with $2 dividend (4% yield) and price rises to $100, your yield on cost stays 4%.
DRIPs automatically use dividend payments to buy more shares. This compounds your investment—more shares mean more dividends, which buy more shares. Over decades, reinvestment significantly boosts total returns.
Most US stocks pay quarterly, though some pay monthly (especially REITs) or semi-annually (common outside US). Annual dividends are divided by payment frequency for per-payment amounts.