Dividend Calculator
Project your future dividend income, cumulative share count, and total portfolio growth over time.
Calculator Variables
Calculation Overview
Project your long-term dividend income, portfolio growth, and future annual payouts with our free dividend growth calculator.
Mathematical Model & Formula
Compounds the portfolio balance each year by adding the annual dividend payout and the total contributions, then recalculates the new dividend income base.
- P_t: Portfolio value at year t
- Yield: Starting dividend yield
- PMT: Monthly contribution
Worked Example Scenario
Scenario: You start with $10,000, add $500/month, and have a 4% starting dividend yield.
- Initial Value = $10,000
- Dividends Year 1 = $400
- Contributions Year 1 = $6,000
- Ending Balance Year 1 = $16,400
Result: Ending balance compounds exponentially over time.
Frequently Asked Questions
What is dividend growth investing?
It is a strategy focused on buying stocks that regularly increase their dividend payouts, creating compounding yield on cost over time.
Should I reinvest dividends?
Yes, reinvesting dividends (DRIP) dramatically speeds up compound interest growth by using cash payouts to purchase additional compounding shares.
Academic & Regulatory References
- SEC on Dividends and DRIPs → Official guide on dividend reinvestment plans.