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Dividend Calculator

Use the TipRanks dividend calculator for a clear and comprehensive way to search for top dividend stocks for your budget. See a full overview of dividend stocks, including dividend yield, projected annual payout, and total dividend payment, according to your investment criteria.

Calculator

Share price
$
x
Number of shares
=
Investment amount
$
Holding period (years)
i
Expected dividend yield
%
i
Distribution frequency
Quarterly
i
Annual contribution
$
i
Dividend tax rate
%
i
Expected annual dividend increase %
%
i
Expected annual share price increase %
%
i
DRIP (Dividend Reinvestment Plan)
Without DRIP
i
After 10 Years
End Balance
Total Return
Avg. Annual Return
Annual Dividend Income
Total Dividend Payment
Yield on Cost
$10000.000.00%0.00%$500.00$5000.005.09%
Year
Shares Owned
Annual Dividend Per Share
Annual Dividend
Compound Frequency
Annual Contribution
Year-End Shares Owned
Year-End Stock Price
New Balance
1100.00$5.00$500.00Quarterly$0.00100.00$100.00$10000.00
2100.00$5.00$500.00Quarterly$0.00100.00$100.00$10000.00
3100.00$5.00$500.00Quarterly$0.00100.00$100.00$10000.00
4100.00$5.00$500.00Quarterly$0.00100.00$100.00$10000.00
5100.00$5.00$500.00Quarterly$0.00100.00$100.00$10000.00
6100.00$5.00$500.00Quarterly$0.00100.00$100.00$10000.00
7100.00$5.00$500.00Quarterly$0.00100.00$100.00$10000.00
8100.00$5.00$500.00Quarterly$0.00100.00$100.00$10000.00
9100.00$5.00$500.00Quarterly$0.00100.00$100.00$10000.00
10100.00$5.00$500.00Quarterly$0.00100.00$100.00$10000.00

Today's Dividends (Dec 25, 2024)

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How do I use the TipRanks dividend calculator?

The TipRanks dividend calculator offers you an easy way to calculate potential dividend income. You can calculate expected dividend growth that incorporates changing factors. For example, if you anticipate a change in dividend yield or share price, or if you want to adjust your personal preferences such as investment amount, annual contribution, or payment type (DRIP or payout) to see how this affects returns.

There are two ways to calculate the potential value of dividend shares – either according to individual stocks or according to investment criteria that you set.

Dividend calculation – specific stock

To calculate the expected income of any dividend stock, that is any stock that offers its investors dividend payments:
  • Insert the name of the stock
  • Insert the number of shares you plan to purchase
  • Select the investment holding period

When you enter the name of the stock in the search bar, the following fields will be automatically completed – share price, expected dividend yield, dividend payout frequency, and the payout method which is either dividend reinvestment plan (DRIP) or cash/ check payout. You can adjust your calculations, for example by changing the investment amount, number of shares, annual contribution, dividend tax rate, expected annual dividend increase, expected annual share price increase, and payment type (DRIP or without DRIP) to see how this affects returns.

Dividend calculation – your terms

You can also use the calculator to measure expected income based on your own terms. To do this:
  • Choose a share price
  • Adjust number of shares
  • Insert expected dividend yield
  • Select dividend distribution frequency

You can adjust your calculations, for example by changing the share price, number of shares, investment amount, expected dividend yield, annual contribution, distribution frequency, dividend tax rate, expected annual dividend increase, expected annual share price increase, and payment type (DRIP or without DRIP) to see how this affects returns.

The results show you the total end balance, total return, average annual return, annual dividend income, total dividend payment, yield on cost, and a breakdown for each year.

FAQ

What are dividends?
Dividends are payments that publicly traded companies make to their shareholders. Companies that offer dividends share their profits with their investors.
Companies that pay dividends usually do so quarterly. Dividends can also be paid over other time frames, for example monthly or yearly. Dividends provide investors with a regular source of income. They can also offer protection against market volatility.
The company’s board of directors determines the dividend amount per share. If a company pays out a $5 dividend every quarter and you own 20 shares, you will receive $100 in dividends quarterly.
Dividend payments are usually paid in cash. Some companies enable investors to automatically reinvest their dividends. This is called DRIP (dividend reinvestment plan).
    Why is dividend yield important?
    Dividend yields are important. They show annual dividend payout relative to share price. Dividend yield offers a way to understand returns as a proportion of your investment. As companies pay dividends on a per-share basis, this makes it easier to compare payouts.
      What is the dividend yield formula?
      Dividend yield is calculated as a percentage. It compares the ratio of a company’s annual dividend to its share price, using this formula:
      Dividend yield = annual dividend/ stock price * 100
        What is DRIP?
        Dividend reinvestment plans, also known as DRIP, are when companies automatically reinvest investors’ dividends to buy more shares. Most companies do not have DRIP.
        The advantage of reinvesting dividends is that they compound.
          How do you calculate dividend payments that are reinvested?
          The formula for calculating dividend reinvestment is:
          FV = P * (1+ r/m)^mt
          Where
          FV = future value of the investment
          P = the money invested or initial balance
          r = the dividend yield (in decimals)
          m = the number of times the dividend is compounded per year (compounding frequency)
          t = the numbers of years the money is invested for

          This may seem complicated, however that’s exactly why we created this stock dividend calculator.
          First calculate dividend yield using the formula

          Dividend yield = annual dividend/ stock price * 100
          If a share price is $50 and the annual dividend is $3.50, dividend yield is calculated using the formula:
          Therefore:
          Dividend yield = $3.50 / $50 = 0.07
          Now, entering the variables into the dividend reinvestment formula:
          Final balance = $1,000 * (1 + 0.07/1) = $1,144.90
          This means investing $1,000 into a company with 7% dividend yield would result in a $144.90 profit after two years and a total of $1,144.90, if dividends are reinvested over one year.