New to this? Read the plain English guide first.
Estimate the dividend income your investment could pay now and as dividends grow.
This calculator estimates how much cash your dividend stocks or funds could pay you. It uses your investment amount, the dividend yield and an assumed yearly growth rate for the dividend.
First year income equals the amount invested times the yield. Each later year equals the previous year times one plus the dividend growth rate. Total income is the sum across the years you choose.
You invest $20,000 at a 3.5 percent yield. First year income is $700, or about $58 a month. If the dividend grows 5 percent each year, income in year ten is about $1,086, and the total received over ten years is about $8,800. These numbers assume the dividend is paid and grows as planned, which is never guaranteed.
Use it to set a realistic income goal. Work backward: if you want $1,000 a month, divide $12,000 by the yield to see the amount you would need. Then check that the dividends are safe by looking at payout ratios and cash flow.
Chasing the highest yield, assuming dividends never get cut and forgetting taxes on dividend income.
Read dividend investing explained and see the reinvestment calculator. See every term in the investing glossary, try more tools in investor tools, or test yourself in Stock Jeopardy.
For education only, not investment advice. Results are estimates based on the numbers you enter.