Dividend calculator
Work out the dividend yield and income of a share, and how they grow if you reinvest.
Optional
Dividends are
Dividend yield
4,00 %
Dividend / share price
First-year income
400
About 33 a month
Final-year income
869
8,7 % yield on cost
End value
23.674
Shares plus cash received
Over 10 years you receive 6.077 of dividends. Reinvesting them changes the end value by 2.354.
Value of the investment
- Reinvested
- Paid out
Dividend income by year
- Year 2436
- Year 4518
- Year 6615
- Year 8731
- Year 10869
Dividends are paid once a year and reinvested at that year's closing price. The growth rates are your own assumptions, not forecasts.
What is dividend yield?
Dividend yield is the yearly dividend of a share as a percentage of its price. It tells you how much cash income an investment pays each year for every 100 you invest, before any rise or fall in the share price.
Dividend formulas
Dividend yield = Annual dividend per share / Share price
Annual income = Shares × Annual dividend per share
Yield on cost = Current annual income / Amount invested
Yield on cost shows what your income is worth against what you originally paid, so it rises as dividends grow.
How to calculate dividends: an example
You invest 10.000 in a share priced at 50, which buys 200 shares. If it pays 2 a year per share, the yield is 4 % and your income is 400 a year, or about 33 a month.
What does reinvesting dividends do?
Reinvested dividends buy more shares, and those shares pay dividends too. In the example above, with price and dividend both growing 5 % a year for 10 years, reinvesting ends at 23.674 against 21.320 taking the cash. The final year's income is 869 instead of 621.
What is a good dividend yield?
Higher is not always better. A yield also rises when the share price falls, so a very high one can mean the market expects a cut. Check that profits cover the dividend:
Payout ratio = Dividends / Net income
Taxes on dividends
Dividends are usually taxed, and the rate depends on your country and situation. Enter your own rate on this page to see the income you keep. Shares from another country can also suffer tax at source, so check whether you can recover it.