Calculate your dividend income, yield, and see how reinvesting dividends grows your portfolio.
Dividend investing focuses on owning shares of companies that regularly distribute a portion of profits to shareholders. Over time, dividend reinvestment (DRIP) compounds returns by using dividend payments to purchase additional shares — accelerating wealth accumulation through the double effect of share growth and increasing dividend payments.
Dividend yield = (Annual Dividend per Share / Stock Price) × 100. A 4% yield on a $60 stock means $2.40 in annual dividends per share. Yields above 4–5% may signal risk (a falling stock price inflates yield) or may represent genuinely high-income sectors like REITs and utilities.
Qualified dividends (from US corporations held 60+ days) are taxed at lower capital gains rates (0%, 15%, or 20%). Ordinary dividends are taxed as regular income. REITs and MLPs typically pay ordinary dividends. Understanding the tax treatment affects your net after-tax yield.