Dividend Calculator
See the income your investment pays in dividends, and what reinvesting does over time.
How this is calculated
annual dividend = amount x yield.Dividends are one slice of the return. See the full picture.
See the full picture with OpenTradeEstimate based on your inputs. Not financial advice. Past performance does not guarantee future results.
How a dividend calculator works
A dividend calculator turns a position size and a yield into the income it pays, then shows what happens when you reinvest those payouts over time.
- Multiply your amount invested by the dividend yield to get this year's income.
- Reinvest each payout so the next dividend is paid on a larger balance.
- Grow the yield by your dividend growth rate each year and add up every payout over the years you enter.
What is a good dividend yield?
Broad dividend payers often land somewhere around 2 to 5 percent. A much higher yield can signal a stock the market expects to cut its payout, so a big number is not automatically better.
How dividend reinvestment compounds
Reinvesting turns income into more shares, and those shares pay their own dividends. Paired with a rising payout, the yearly income climbs faster than a flat yield alone, which is why the reinvested total pulls ahead of a simple year one estimate.