Dividend Calculator
Calculate dividend income and yield from stock investments
Dividend Investment Details
Total annual dividend per share
Expected annual dividend increase
Qualified dividends: 0-20%, Ordinary: up to 37%
Dividend Income Analysis
Enter your investment details and click Calculate
Calculate your dividend income
Understanding Dividend Investing
Key Dividend Metrics
- Dividend Yield: Annual dividend / Share price
- Dividend Payout Ratio: Dividends / Earnings
- Dividend Growth Rate: Annual increase in dividends
- Yield on Cost: Dividend / Original purchase price
Dividend Reinvestment (DRIP)
DRIP automatically uses your dividend payments to buy more shares, compounding your investment. Over time, this can significantly increase your share count and income stream.
Dividend Growth Investing
Focusing on companies that consistently grow their dividends can lead to impressive income growth over time. Dividend Aristocrats (25+ years of increases) and Dividend Kings (50+ years) are popular choices.
Dividend Tax Rates (US)
- Qualified Dividends: 0%, 15%, or 20% based on income
- Ordinary Dividends: Taxed as regular income (up to 37%)
- Tax-Advantaged Accounts: IRAs and 401(k)s defer/avoid taxes
What to Look For
- Sustainable payout ratio (typically under 60%)
- Consistent dividend history
- Strong cash flow to support dividends
- Reasonable valuation
- Competitive advantages (economic moat)
Warning Signs
- Very high yields (10%+) may indicate trouble
- Payout ratio above 100% (unsustainable)
- Declining earnings
- High debt levels
- Dividend cuts or freezes
Disclaimer: This calculator is for informational purposes only and should not be considered financial, tax, or legal advice. Results are estimates based on the information provided and current tax laws. Consult a qualified professional for advice specific to your situation.
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