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Dividend Income Calculator

Estimate dividend income over time as the payout grows each year.

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How dividends work

Dividends are payments from a company to its shareholders. Yield is the yearly dividend divided by the price. Companies that raise dividends each year can lift your income without you investing more.

Caution

Dividends are not guaranteed and can be cut. A very high yield can signal risk. This estimate ignores share price changes, reinvestment and tax.

Worked example

$20,000 at a 3.5% yield pays $700 in year 1. If the dividend grows 5% a year, year 10 pays about $1,086 and you receive about $8,800 over 10 years.

Last reviewed November 2026. Formulas are standard and shown in the sections above; results are estimates.

Tips and common mistakes

Frequently asked questions

What is a good dividend yield?

Many broad funds yield 1-4%. Very high yields can be risky.

Does it include price growth?

No. It shows dividend income only.

What is dividend growth?

The yearly increase in the payment per share.

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Results are estimates and not financial advice.