Enter a share price and its yearly dividend to see the yield and what your holding pays. The second section projects the value and income over time if you reinvest every dividend.
| Year | Shares | Dividends that year | Value |
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Dividend yield is the yearly dividend divided by the share price: a 50 share paying 2 a year yields 4%. Your income is simply dividend per share × number of shares, so 200 shares pay 400 a year, or 100 a quarter.
With a dividend reinvestment plan (DRIP), each dividend buys more shares, and those shares earn dividends of their own. The projection grows the dividend per share and the share price by the rates you choose each year, then uses that year’s dividends to buy shares at that year’s price.
Because yield = dividend ÷ price, if dividends grow faster than the share price, the yield on each new purchase rises; if the price grows faster, it falls. The "not reinvested" figure adds the dividends you would have taken as cash to the value of your original shares, so you can see how much reinvesting adds.
Yield = annual dividend per share ÷ share price × 100. A share at 80 paying 3.20 a year yields 4%. If the price falls and the dividend stays the same, the yield rises.
Divide the income you want by the yield. For 5,000 a year at a 4% yield you need about 125,000 invested, before tax.
A dividend reinvestment plan automatically uses your dividends to buy more shares instead of paying cash. Over long periods this compounding can make up a large share of total return.
Broad stock markets typically yield around 1.5–4%. Very high yields (say above 8%) can signal the market expects the dividend to be cut, so check how well the dividend is covered by earnings.
Usually, depending on your country and account type. This calculator shows pre-tax figures; tax-sheltered accounts may let dividends compound untaxed.
