Dividend Calculator

Formula

Annual income = shares × annual dividend/share. Yield = annual dividend ÷ share price × 100. Required investment = target income ÷ yield.

Assumptions

• Dividend projections assume constant growth rates when specified.
• Reinvestment buys fractional shares at the modeled share price after each year's dividend.
• Periodic contributions are added each payment period (annual, quarterly, or monthly) after dividends for that year.
• Dividend growth applies at the start of each projection year; price growth applies at year end.
• Taxes, fees, and dividend cuts are not modeled unless stated.

Limitations

• Estimates only — not investment advice.
• Dividends can change, be cut, or suspended at any time.
• Market values fluctuate; projections are not guaranteed.

Worked example

100 shares at $2.00 annual dividend

Annual dividend income = 100 × $2.00 = $200. At a $40 share price, yield = 5%.

Frequently asked questions