Our calculator provides a clear and professional breakdown of your projected investment growth. It factors in key variables to deliver accurate, personalized projections.

Inputs You’ll Need:

Share Price: The current market price of the stock.
Example: If a stock is trading at $100, enter “100.”

Number of Shares: The total number of shares you own or plan to purchase.
Example: If you own 50 shares or plan to buy that amount, enter “50.”

Dividend Yield (%): The annual dividend expressed as a percentage of the share price.
Example: If the annual dividend is $5 and the share price is $100, the dividend yield is 5%.

Distribution Frequency: How often dividends are paid.

Annual Contributions ($): Any additional amount you plan to invest in the stock each year.
Example: If you plan to invest $2,000 annually in the stock, enter “2000.”

Dividend Tax Rate (%): The percentage of dividends subject to taxation.
Example: If your tax rate on dividends is 15%, enter “15.”

Expected Dividend Growth Rate (%): The annual percentage increase in dividend payments over time.
Example: If dividends are expected to grow 5% annually, enter “5.”

Expected Stock Price Growth Rate (%): The projected yearly appreciation of the stock’s value.
Example: If the stock price is expected to grow 7% annually, enter “7.”

Dividend Reinvestment Plan (DRIP): A choice to reinvest dividends to purchase more shares or take them as cash:
With DRIP: Dividends are reinvested, compounding growth by purchasing more shares.
Without DRIP: Dividends are taken as cash and not reinvested.

These fields allow you to calculate the potential growth of your investment and the impact of reinvested dividends, contributions, and market factors over time. Understanding them ensures you maximize the tool’s utility for planning your investment strategy.

Dividends are periodic payments made by companies to their shareholders, typically sourced from profits. These payments reward investors for holding shares and are a critical part of many investment strategies, especially for those seeking:

Regular Income: Dividends provide steady cash flow without requiring the sale of shares.
Compounding Growth: When dividends are reinvested, they can accelerate portfolio growth through compounding.
Portfolio Stability: Dividend-paying companies often exhibit lower volatility and are financially robust.

Dividends represent a tangible return on your investment.
Reinvesting dividends can multiply returns exponentially over time.
Companies with strong dividend histories often signal financial health and reliability.

The Dividend Reinvestment Plan (DRIP) is a strategy where dividends are automatically used to purchase more shares.

This approach magnifies portfolio growth by:

Compounding Returns: Each reinvested dividend increases your share count, which in turn increases future dividend payouts.
Reducing Transaction Costs: Reinvestment often incurs no brokerage fees.
Creating Passive Wealth Growth: Automated reinvestment allows your portfolio to grow without requiring active management.
Example: A $10,000 investment in a stock with a 5% annual dividend yield grows significantly more over 10 years with DRIP compared to taking dividends as cash.

The Investing.com stock screener is a powerful tool for finding dividend stocks by filtering for metrics such as Dividend Yield, Dividend Growth (3-year and 5-year), and Payout Ratio to identify companies offering consistent and sustainable payouts.

Additional filters like Dividends Payment Streak and Growth Streak highlight long-term reliability, while options like Ex-Date and Payment Date of Upcoming Dividends help locate stocks with imminent payouts.

The screener also includes the 5-Year Average Dividend Yield, enabling comparisons to spot companies with improving or stable yields.

Diversify Your Holdings: Spread your investments across multiple sectors to reduce risk.
Focus on Dividend Growth Stocks: Companies with consistent dividend increases tend to outperform over the long term.
Monitor Financial Health: Look for stable payout ratios (ideally below 60%) and sustainable growth strategies.
Reinvest Strategically: DRIP may suit long-term growth, but cash payouts can complement income-focused goals.
Stay Tax Aware: Understand the tax implications of dividend income in your jurisdiction.

Scenario 1: A Stable Dividend Portfolio
Investing in well-established companies like utilities or blue-chip stocks can provide steady income, even in volatile markets. This is ideal for retirees or risk-averse investors.

Scenario 2: High-Growth Dividend Stocks
Younger investors might focus on companies with strong dividend growth rates, which offer lower initial yields but greater compounding potential over time.

Scenario 3: Tax-Efficient Dividend Planning
Tax-conscious investors can use the calculator to determine after-tax returns, especially if they are in high-income brackets or hold foreign stocks subject to withholding taxes.

What is a “good” dividend yield for an investment?
Dividend yields between 3% and 6% are often considered attractive, though it depends on the industry. Higher yields can sometimes signal financial instability, so due diligence is crucial.

Can I use this calculator for monthly dividend-paying stocks?
Yes. Select “monthly” under distribution frequency to account for more frequent payouts.

What factors impact dividend growth rates?
Dividend growth depends on company profitability, payout ratios, and overall business health. Historical growth rates can provide useful benchmarks.

How does DRIP compare to receiving dividends as cash?
DRIP generally outperforms cash payouts over time due to the compounding effect, but cash payouts may suit those seeking immediate income.