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Dividend Calculator
Project your dividend income and portfolio value over time, with reinvestment, dividend growth and price appreciation. Enter your numbers and press Calculate.
Written by TopicDrill Editorial Team·Updated June 2026
Portfolio and dividends over time
Portfolio Dividends
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How the dividend calculator works
Each year the calculator applies your share price growth to the portfolio, then pays a dividend equal to the yield on that value. If you choose to reinvest, the dividend buys more shares and is added back to the balance, so future dividends are larger. The yield itself can grow each year to reflect rising payouts.
The chart traces both the portfolio value and the running total of dividends collected, so you can see how reinvestment and growth compound over the years.
A quick example
Invest $25,000 at a 4% yield for 20 years, with 5% dividend growth and 4% price growth, reinvesting along the way. The portfolio grows well beyond the starting amount and the annual dividend in the final year is several times the first year's payout, thanks to compounding.
Things to keep in mind
Real dividends are taxed unless held in a tax-advantaged account, and they can be cut in tough years. For background on dividend investing and the risks, the SEC Investor.gov site is a reliable resource. To see the after-tax picture, try our dividend tax calculator.
Frequently asked questions
How is dividend income calculated?
Annual dividend income equals your investment value multiplied by the dividend yield. A $25,000 holding at a 4% yield pays about $1,000 a year. As the portfolio grows through price gains or reinvestment, the dollar amount of dividends grows with it.
What does reinvesting dividends do?
Reinvesting, often through a DRIP, uses each dividend to buy more shares instead of taking cash. Those extra shares pay their own dividends, so income and portfolio value compound. Over long periods this can make a large difference versus taking the cash.
What is dividend growth?
Many companies raise their dividend each year. Dividend growth is the annual percentage increase in the payout. Even a modest growth rate compounds over decades and steadily lifts your yield on the original amount you invested.
Are dividends guaranteed?
No. Dividends are declared at a company's discretion and can be cut or suspended, and share prices move up and down. This calculator projects a smooth scenario for planning, so treat the result as an estimate, not a promise.
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