Dividend Yield & DRIP Calculator
What a share’s dividend pays you now, and what reinvesting it could grow to.
After 10 years
Year 1 pays today’s dividend; it grows once a year after that. Dividends are reinvested at the price of the day they are paid.
How this was calculated
Results are estimates for general information and planning, not financial advice. Banks and institutions may calculate differently (rounding, fees, rate changes). Confirm figures with your lender or a qualified adviser before deciding.
About the Dividend Yield & DRIP Calculator
A share’s dividend yield is its yearly dividend as a percentage of the share price: what the dividend pays on money invested today. If you bought earlier, your yield on cost compares the same dividend with what you paid, and the payout ratio shows how much of the company’s earnings the dividend uses up. This calculator works out all three, and your income a year, a month and a payout, from the dividend entered for the year, per payout, or — as Indian companies announce it — as a percentage of the face value.
The DRIP projection then follows your holding year by year: each payout, less any tax withheld, buys more shares at that day’s price, while the dividend and the share price grow at rates you choose. It shows the shares, the income and the total return each year, and what you would have if you took the dividends as cash instead. Nothing you enter leaves your browser.
How to use it
- Enter the share price and the dividend per share — for the whole year, for one payout, or as a % of the face value — and how often it is paid.
- Enter your holding as a number of shares or as the amount invested. Add your average cost per share for the yield on cost, and the earnings per share for the payout ratio.
- If tax is withheld from your dividends, enter the rate that applies to you.
- For the projection, set the number of years, the yearly growth of the dividend and of the share price, and whether the dividends are reinvested (in whole shares only, if you buy them yourself).
- Read the yield and the income, then the year-by-year table and chart. Copy the summary or download the projection as CSV.
Examples
Share price ₹1,250; dividend ₹25 a year, paid twice; 200 shares bought at ₹800; EPS ₹62.50
Dividend yield 2% · yield on cost 3.13% · payout ratio 40% (cover 2.5×) · income ₹5,000 a year, ₹2,500 a payout
“Dividend of 300%” on shares with a ₹2 face value, price ₹600
₹6 a share · yield 1%
The percentage is of the face value, not of the price: 300% × ₹2 = ₹6.
The first example, dividend +8% and price +6% a year, dividends reinvested
246.12 shares worth ₹5,50,946 · total return 120.4% (8.22% a year) · ₹12,094.82 of dividends in year 10
Taking the dividends as cash instead: 200 shares worth ₹4,47,712 plus ₹72,433 of dividends, ₹5,20,145 in all.
$0.24 a quarter on a $48 share
$0.96 a year · yield 2%
Common uses
- Compare the income from two dividend shares, or a share and a fixed deposit, on the same basis.
- See your real yield on shares you bought years ago.
- Plan how long reinvesting dividends takes to reach an income you want.
- Check whether a company’s dividend is covered by its earnings.
The formulas
- Dividend yield = annual dividend per share ÷ share price. ₹25 on a ₹1,250 share is 2%.
- Yield on cost = annual dividend per share ÷ your average cost per share. The same ₹25 on shares bought at ₹800 is 3.125%.
- Payout ratio = dividend per share ÷ earnings per share; dividend cover is the inverse, EPS ÷ DPS. A 40% payout ratio is a cover of 2.5×.
- Income = dividend per share × shares × (1 − tax withheld).
- Dividend declared as % of face value: dividend per share = the % × the face value.
These are the definitions used in the CFA Institute’s equity curriculum.
How the DRIP projection works
- The dividend for year 1 is the one you entered; from year 2 it grows by the dividend growth rate once a year.
- The share price grows smoothly at the price growth rate, so a payout half-way through the year is reinvested at the half-year price.
- Each payout pays shares × the year’s dividend ÷ the payouts a year, less the tax withheld. With reinvesting, that buys shares at the day’s price — fractions of a share, or only whole shares with the change kept as cash. Without reinvesting, it is added to cash, which earns nothing.
- Total return = (holding value + cash) ÷ today’s value − 1, and the yearly rate is its compound annual growth rate.
Reading a dividend yield
- A yield is backward-looking when it uses the last year’s dividends (trailing yield) and an estimate when it uses the next year’s (forward yield). Special, one-off dividends inflate a trailing yield.
- A very high yield can mean a falling share price rather than a generous company: the market may expect the dividend to be cut. A payout ratio above 100% means the company pays more than it earns.
- Dividends are not extra money: on the ex-dividend date the share price usually falls by about the dividend. What matters is the total return — dividends plus the change in price.
Limitations
- The projection uses constant growth rates you choose; real dividends and prices do not grow smoothly, and dividends can be cut.
- Tax is applied as a flat withholding rate. Your final tax on dividends depends on your country’s rules and your income: a resident individual in India adds dividends to income taxed at the slab rates, and the TDS deducted counts towards that tax.
- Brokerage and other costs of reinvesting are not included, and cash is assumed to earn nothing.
- Up to 50 years.
Privacy
Everything is calculated in your browser. Your holdings and results are never uploaded or stored on a server.
Frequently asked questions
How do I calculate dividend yield?
Divide the dividend per share for a year by the share price, and multiply by 100. A share at ₹1,250 that pays ₹25 a year yields 2%. For a dividend paid each quarter, multiply one payout by four first.
What does “300% dividend” mean?
Indian companies often announce dividends as a percentage of the face value (par value), not of the share price. A 300% dividend on a ₹2 face value is ₹6 a share; on a share trading at ₹600 that is a 1% yield.
What is yield on cost?
The current dividend divided by what you paid for the share. If you bought at ₹800 and the dividend is now ₹25, your yield on cost is 3.125%, while a new buyer at ₹1,250 gets 2%. It rises as the dividend grows, but it does not say whether the share is a good buy today — the current yield does.
What is a good payout ratio?
There is no single number. A low ratio leaves room to keep paying, or raising, the dividend if earnings dip; a ratio above 100% means the dividend is not covered by the year’s earnings. Companies in steady businesses often pay out more than fast-growing ones, which reinvest.
What is a DRIP?
A dividend reinvestment plan uses each dividend to buy more shares of the same company, so the next dividend is paid on more shares. In markets without automatic DRIPs, you can do the same by buying shares with the dividends yourself; tick “Whole shares only” to model that.
Does reinvesting always beat taking the cash?
In the projection, yes when the share price and dividend grow, because the reinvested money compounds while the cash earns nothing. In reality it depends on what the share does next and on what else you could do with the cash, and taxes on dividends are due either way.