Free Dividend Calculator
Calculate dividend income, yield, and reinvestment growth. Plan your path to financial freedom with our expert-verified tools.
Upcoming Dividends
LiveNext ex-dividend date: 2026-01-19
Top Dividend Aristocrats
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Table of Contents
How to Use This Calculator
Follow these simple steps to calculate your dividend income:
- Enter your investment amount - The total dollar amount you plan to invest in dividend stocks.
- Set the dividend yield - The annual dividend percentage. S&P 500 average is around 1.3%, while high-yield stocks can be 4-8%+.
- Choose your time horizon - How many years you plan to hold your investments.
- Add expected dividend growth - Many quality companies increase dividends 5-10% annually.
- Click Calculate - See your projected annual income, monthly income, and total dividends over time.
Top Dividend Aristocrats
S&P 500 companies with 25+ consecutive years of dividend increases:
| Symbol | Company | Yield | Years |
|---|---|---|---|
| DOV | Dover | 1.02% | 69 |
| GPC | Genuine Parts | 3.08% | 68 |
| PG | Procter & Gamble | 2.89% | 68 |
| EMR | Emerson Electric | 1.5% | 67 |
| MMM | 3M Company | 1.72% | 66 |
Understanding Dividend Investing
Dividend investing is a strategy focused on buying stocks that pay regular cash dividends to shareholders. This approach provides two potential sources of return: dividend income and capital appreciation.
What is Dividend Yield?
Dividend yield is calculated by dividing the annual dividend per share by the stock price. For example, if a stock pays $2 per year in dividends and trades at $50, the yield is 4%. Higher yields provide more income but may indicate higher risk.
The Power of Dividend Growth
Companies that consistently raise dividends, like Dividend Aristocrats, can provide growing income streams that outpace inflation. A stock yielding 3% today with 7% annual dividend growth will yield over 6% on your original cost in 10 years.
Dividend Reinvestment (DRIP)
Automatically reinvesting dividends to buy more shares creates a compounding effect. Over long periods, reinvested dividends can account for more than half of total returns.
Frequently Asked Questions
What is a good dividend yield?
A "good" yield depends on your goals. The S&P 500 averages 1.3-1.5%. Yields of 2-4% from quality companies offer a balance of income and safety. Yields above 6% may indicate higher risk or an unsustainable dividend.
How often are dividends paid?
Most US companies pay quarterly (4 times per year). Some REITs and closed-end funds pay monthly. A few international companies pay semi-annually or annually.
What is a Dividend Aristocrat?
A Dividend Aristocrat is an S&P 500 company that has increased its dividend every year for at least 25 consecutive years. There are currently 67 Aristocrats.
Are dividends taxed?
Yes. Qualified dividends are taxed at 0%, 15%, or 20% depending on your income bracket. Non-qualified dividends are taxed as ordinary income. Use our Dividend Tax Calculator to estimate your tax liability.
What is DRIP?
DRIP (Dividend Reinvestment Plan) automatically reinvests your cash dividends to purchase additional shares. This compounds your returns over time without requiring any action on your part.
How do I start dividend investing?
Open a brokerage account, research dividend-paying stocks or ETFs (like SCHD, VYM, or individual Aristocrats), and consider starting with a diversified dividend ETF before picking individual stocks.
Sources
This calculator and content are based on the following authoritative sources:
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Investopedia - Dividend Yield Definition
Comprehensive guide to understanding dividend yield calculation, what constitutes a good yield, and how to evaluate dividend-paying stocks.
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IRS - Topic No. 404 Dividends
Official IRS guidance on dividend taxation, qualified vs. non-qualified dividends, and reporting requirements.
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S&P Global - Dividend Aristocrats Index
Official index methodology and current constituents of the S&P 500 Dividend Aristocrats.