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Dividend income · Yield on cost · DRIP growth

Dividend Income Calculator

Enter your portfolio value, dividend yield, and annual growth rate to see your projected income, yield on cost, and how DRIP reinvestment compounds your dividends over 20 years.

Your portfolio
Portfolio value $100,000
$
Current dividend yield
2.5%
Annual dividend growth rate
7%
Monthly contributions
Monthly DCA amount $500
$
Settings
Reinvest dividends (DRIP)
Portfolio price appreciation
4%
Tax rate on dividends
15%
Annual dividend income (Year 1)
$0
$0 / month
After-tax annual income
$0
$0 / month after tax
Current yield
0%
Yield on cost (Yr 10)
0%
Annual income (Yr 20)
$0
Dividend income growth over 20 years
With DRIP
Without DRIP
20-year dividend income projection
Year Portfolio value Annual dividend Yield on cost After-tax income

What is yield on cost? Yield on cost is your current annual dividend divided by what you originally paid for the investment — not the current market value. As dividends grow each year, your yield on cost rises even if the stock price stays flat. A stock purchased at $100 paying a $2 dividend (2% yield) that grows its dividend to $4 after 10 years has a 4% yield on cost — double the original yield, on the same original investment.

This calculator uses simplified assumptions: constant dividend growth rate, constant price appreciation, and consistent monthly contributions. Actual dividend income depends on stock selection, company performance, payout ratio sustainability, and market conditions. Dividend growth rates and stock prices are not guaranteed. This is for educational purposes only. Not financial advice.

How the dividend income calculator works

This calculator projects your dividend income over 20 years based on your starting portfolio value, current dividend yield, annual dividend growth rate, and monthly DCA contributions. With DRIP toggled on, it reinvests dividend payments each year — compounding your share count alongside organic portfolio growth. With DRIP off, it shows the income you'd receive as cash without reinvestment.

The yield on cost metric shows how your effective income return rises over time as the dividend grows. A 2.5% starting yield growing at 7% per year becomes a 4.9% yield on cost after 10 years — nearly double, on the same original investment cost.

How to use this calculator

For a full guide on building a dividend growth portfolio, read how to build a dividend growth portfolio. To model reinvestment on a specific holding, use the DRIP calculator.