How the dividend math works
Annual dividends = shares held × dividend per share. Invest 10,000,000 in a 50,000 stock (200 shares) with a 4% yield: 2,000 per share, 400,000 a year before tax. The calculator repeats this each year with dividend growth, price growth and tax.
Inputs
- Dividend input: yield (%) or an exact dividend per share.
- Payments: yearly, twice a year, quarterly or monthly — the year's dividend is split and reinvested each time.
- Dividend growth: yearly increase of the per-share dividend (an assumption).
- Reinvest / cash: buy more shares with dividends (compounding) or keep cash.
- Tax: deducted as a flat percentage.
Yield on cost
As dividends grow and reinvested shares pile up, the last year's dividends relative to your original amount can exceed the starting yield.
Caveats
Growth and price rates are assumptions. Dividends can be cut or stopped, prices can fall, and real taxation can differ from this flat rate.
FAQ
How big is the difference between reinvesting and taking cash?
Reinvested shares earn their own dividends, so it compounds; the gap widens with time.
How is tax applied?
The chosen percentage is deducted from each dividend before reinvesting or counting it.
Does it work for monthly payers?
Pick Monthly and the year's dividend is split into 12 payments, each reinvested.
How should I choose a growth rate?
History is a reference, not a promise. Start at 0% and test sensitivity.