💵 Dividend Calculator
Calculate annual and monthly dividend income from your stock portfolio, project total income over time, and see how reinvesting dividends (DRIP) can grow your portfolio.
Enter your values
- Monthly dividend income (year 1)€166.67
- Total dividends received€31,668.41
- Portfolio value at end€81,668.41
What this means
- Year-1 income: €2,000.00 per year (€166.67 per month)
- Total dividends received over the period: €31,668.41
- With DRIP, your portfolio grows to €81,668.41 by reinvesting dividends
Visual results
Detailed breakdown
| Year | Annual dividend | Cumulative dividends | Portfolio value |
|---|---|---|---|
| 1 | €2,000.00 | €2,000.00 | €52,000.00 |
| 2 | €2,184.00 | €4,184.00 | €54,184.00 |
| 3 | €2,389.51 | €6,573.51 | €56,573.51 |
| 4 | €2,619.64 | €9,193.15 | €59,193.15 |
| 5 | €2,877.99 | €12,071.14 | €62,071.14 |
| 6 | €3,168.81 | €15,239.95 | €65,239.95 |
| 7 | €3,497.11 | €18,737.06 | €68,737.06 |
| 8 | €3,868.80 | €22,605.86 | €72,605.86 |
| 9 | €4,290.88 | €26,896.73 | €76,896.73 |
| 10 | €4,771.68 | €31,668.41 | €81,668.41 |
About this calculator
What this calculator does
This dividend calculator shows how much annual and monthly income a dividend-paying stock portfolio generates, and how that income grows over time as companies raise their payouts. You can model two scenarios: taking dividends as cash, or reinvesting them back into the portfolio (a strategy known as DRIP — Dividend Reinvestment Plan). The year-by-year chart and table update instantly as you adjust your inputs.
The formula
Year-1 income is straightforward:
Annual Income = Portfolio Value × (Dividend Yield / 100)
Monthly Income = Annual Income / 12
For subsequent years, the dividend yield grows by the annual dividend growth rate, reflecting dividend growth stocks that raise their payout each year:
Yield in Year N = Initial Yield × (1 + Dividend Growth Rate)^(N − 1)
When DRIP is enabled, each year’s dividend is added back to the portfolio before the next year’s dividend is calculated:
Portfolio in Year N = Portfolio in Year N−1 + Dividend in Year N−1
This compounding effect — more shares earning larger dividends each year — is what makes long-term dividend reinvestment so powerful.
How to interpret your results
- Annual dividend income (year 1) is how much the portfolio pays in its first year at the current yield. This is the baseline before any growth or reinvestment takes effect.
- Monthly dividend income divides that figure by 12 — useful for comparing dividend income to monthly expenses or salary.
- Total dividends received is the sum of all dividends paid over the full horizon. With DRIP enabled, this figure is higher because each reinvested dividend increases the portfolio base that generates future dividends.
- Portfolio value at end shows the final portfolio size. With DRIP it grows year after year; without it, the original portfolio value is unchanged (this calculator focuses purely on the dividend income stream, not stock price appreciation).
A 4% yield on a €50,000 portfolio produces €2,000/year today — but if the dividend grows at 5% annually and dividends are reinvested, the annual income in year 10 is considerably higher and the portfolio itself has grown substantially.
Common use cases
- Planning for dividend income in retirement — estimating how much a portfolio needs to replace a portion of a salary
- Comparing DRIP versus cash dividends over a long investment horizon
- Modelling dividend growth investing — stocks with moderate yields but consistent annual payout increases
- Understanding yield on cost — how a 3% yield today becomes a much higher effective yield years later as the company raises its dividend
Frequently asked questions
What is dividend yield?
Dividend yield is the annual dividend payment expressed as a percentage of the stock or portfolio's current market value. For example, a €1,000 stock that pays €40 in annual dividends has a 4% yield. It tells you how much income you earn relative to the price you paid.
What is DRIP and why does it matter?
DRIP stands for Dividend Reinvestment Plan. Instead of taking dividends as cash, you use them to buy more shares. Over time this creates a compounding effect: more shares earn more dividends, which buy even more shares. Over a 20-year horizon the difference between a DRIP and a cash-dividend portfolio can be substantial.
Are dividends taxed?
In most countries, dividends are subject to income or withholding tax. In Albania, dividend income is taxed at a flat 15% rate. In many EU countries the rate ranges from 15% to 30%, sometimes reduced by double-taxation treaties. The exact tax depends on your residence, the company's country of incorporation, and whether the shares are held in a tax-advantaged account.