Project your passive income from dividends. See how dividend growth and reinvestment (DRIP) compound over time to build real wealth.
Dividend investing is one of the most reliable ways to generate passive income. When you invest in dividend-paying stocks or ETFs, you receive regular cash payments based on the company's dividend yield. The average S&P 500 dividend yield historically ranges from 1.5% to 2%, but many companies and REITs offer yields of 3% to 8% or more. Our free dividend income calculator helps you project how your dividend income could grow over time.
Dividend reinvestment plans (DRIP) supercharge your returns by automatically using dividend payments to purchase additional shares. This creates a compounding effect: more shares generate more dividends, which buy even more shares. Over a 20 to 30 year horizon, DRIP can double or triple your total dividend income compared to simply collecting cash payouts. The calculator above shows you exactly how much difference DRIP makes for your specific portfolio.
Key factors that affect your dividend income include your initial investment amount, monthly contributions, dividend yield, dividend growth rate, and tax rate. Companies that consistently raise their dividends (known as dividend aristocrats and dividend kings) can significantly boost your income over time through annual payout increases. Use this calculator to experiment with different scenarios and find the strategy that works best for your financial goals.
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