After 20 years
Assumes steady share price and dividend growth, dividends reinvested at the share price on the payment date, and no taxes, fees or dividend cuts. Real returns vary, and dividends can be reduced or stopped. For education only, not investment advice.
What this dividend reinvestment calculator does
This dividend reinvestment calculator does two jobs in one:
- Dividend yield: enter a share price and dividend to see the yield, the annual dividend per share and the yearly income on your investment.
- Reinvestment projection: see how your investment could grow over time if you reinvest dividends, compared with taking them as cash, including how your yearly dividend income grows.
A chart shows both paths side by side, so you can see how reinvesting compounds over the years.
How to use it
Dividend yield
- Share price: the current price of one share.
- Dividend per payment: the amount paid per share each time.
- How often it pays: monthly, quarterly, twice a year or once a year.
Growth with reinvestment
- Amount invested and added each month, if you invest regularly.
- Years: how long you plan to invest.
- Dividend growth per year: how fast you expect the dividend to rise.
- Share price growth per year: how fast you expect the share price to rise.
The formulas
Dividend yield = annual dividend per share ÷ share price × 100
A $0.50 quarterly dividend is $2.00 a year. On a $50 share, that's a 4% yield.
For the projection, the calculator works month by month: the share price grows, any monthly additions buy shares, and on each payment date the dividend is either used to buy more shares (reinvested) or kept as cash.
For more detail, read how to calculate dividend yield.
Example
$10,000 at a 4% yield, with dividends growing 5% a year and the share price growing 4% a year:
| After | Dividends reinvested | Dividends taken as cash (total) |
|---|---|---|
| 10 years | about $22,207 | about $19,833 |
| 20 years | about $51,352 | about $35,137 |
| 30 years | about $124,157 | about $59,010 |
See is reinvesting dividends worth it for the full comparison.
Things to keep in mind
- Dividends can change. Companies can raise, cut or stop dividends.
- Taxes: dividends are often taxable even when reinvested, depending on your country and account type.
- Steady growth is an assumption. Real share prices and dividends rise and fall.
- Costs matter. Check whether your platform charges for reinvestment.
Frequently asked questions
What is a good dividend yield?
It depends on the company and market conditions. Very high yields can signal risk, because a falling share price pushes the yield up.
Does the calculator include taxes?
No. Results are before tax and fees.
Can I use it for funds and ETFs?
Yes. Enter the fund's price and its distribution per payment.
Is my data saved?
No. The calculator runs in your browser, and nothing you enter is stored.
Related tools
This calculator is for education only and is not financial or investment advice. Results are estimates based on the assumptions you enter.