Dividend Income Calculator
See how much dividend income any stock could generate. Model DRIP compounding and dividend growth over time.
How dividend investing works
Dividend investing generates passive income from stock ownership. Companies distribute a portion of profits to shareholders, typically quarterly. The dividend yield is the annual dividend divided by the stock price — a 3% yield on a $10,000 investment produces $300/year.
The power of DRIP
Dividend Reinvestment Plans (DRIP) automatically use dividends to purchase additional shares. This creates a compounding effect — more shares generate more dividends, which buy more shares. Over decades, DRIP can dramatically increase total returns compared to taking cash dividends.