Dividend Calculator

Reinvesting dividends through a DRIP turns a steady payout into a compounding engine, and this tool lets you watch that effect play out across 10, 20, and 30-year horizons. Seeing the income curve makes the math tangible: a stock yielding 3.5% in 2026 with a 5% annual dividend growth rate could roughly double its income in about 14 years once every payout buys more shares.

The projection runs on a compound growth model built from four inputs you provide: your initial investment, the current yield, the annual dividend growth rate, and your reinvestment choice. Each year it works out how many new shares a DRIP buys, using the dividend per share at the time and the stock's assumed future price. At the core sits the formula DI = Initial Investment * (1 + Yield)^n * (1 + Dividend Growth Rate)^n, with the share count and reinvested payouts updated year by year.

Treat the output as a scenario rather than a promise. Growth rates drift, and companies facing an economic downturn can trim or halt dividends entirely, which the model cannot foresee. Projected income alone is a thin basis for a decision; weigh it against the underlying business and how the position fits your broader goals.