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Any Dividend Calculator

Dividend Calculator

Project the future value of a dividend portfolio — reinvested dividends, monthly contributions, dividend growth, and price appreciation. Free, no signup, runs in your browser.

Your scenario
$
$
%
% / yr
% / yr
yrs
%
Projected value at year 20

$615,844

You'll have invested

$130,000

Dividends received (net)

$265,725

Capital growth

$220,120

Annualized return

12.84%

Final annual dividend

$54,654

Yield on cost

42.04%

Growth over time

Line chart plotting three series by year: portfolio value, cumulative contributions, and cumulative net dividends. Over 20 years the portfolio grows to $615,844 from $130,000 contributed, including $265,725 in net dividends. The exact figures are listed in the results above this chart.

How the dividend calculator works

The model runs a month-by-month simulation. Each month it adds your monthly contribution, pays a dividend equal to (portfolio value × annual yield) ÷ 12, subtracts your dividend tax rate, optionally reinvests the after-tax dividend, then applies one month of price growth.

Dividend growth is applied as a monthly ratchet — your yield increases at a constant compounded rate so it matches the annual growth you entered. Price growth is applied the same way.

Yield on cost = final annual dividend ÷ total contributed. The annualized return is a money-weighted return (IRR) that accounts for when each contribution was actually invested — see the methodology for details. The chart shows year-end snapshots; intermediate months are simulated but not plotted.

Frequently asked questions

How does dividend reinvestment (DRIP) actually grow a portfolio?
Every dividend you receive buys more shares of the same stock. Those new shares pay dividends too. Over years, this compounding effect means most of your final value comes from dividends-buying-shares-that-pay-dividends — not from your original contribution.
What yield should I assume?
Most dividend-paying US stocks yield 1–4%. High-yield ETFs (covered-call funds, REITs, BDCs) can yield 6–12%, but those often have lower price growth or even price decay. A reasonable starting assumption for a broad dividend portfolio is 3–4%.
How are dividend taxes calculated here?
You enter your effective dividend tax rate (a flat percentage). Qualified dividends in the US are taxed at long-term capital gains rates (0%, 15%, or 20%). Non-qualified dividends are taxed as ordinary income. If unsure, 15% is a reasonable middle-bracket assumption.
Why is "dividend growth" separate from "stock price growth"?
A stock's share price can grow at one rate while its per-share dividend grows at another. A "dividend growth" stock like JNJ might have 5% price growth but 6% annual dividend increases. The calculator models both independently.
Is this financial advice?
No. The calculator is for educational purposes only. Real-world returns vary, dividends can be cut, and tax law changes. Always consult a licensed advisor before making investment decisions.

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