How do I calculate my dividend income?

Multiply the shares you own by the dividend per share. For a quick estimate, multiply the amount you invest by the dividend yield: $10,000 at a 3% yield pays about $300 a year, usually in four payments. This calculator works from a company's real dividends over the last 12 months.

How much do I need to invest to make $1,000 a month in dividends?

You need $12,000 a year. At a 3% yield that takes about $400,000. At 4%, about $300,000. A much higher yield shrinks the number, but a very high yield often means the market expects a cut.

What is a good dividend yield?

Most healthy dividend stocks yield between 2% and 5%. Above about 6–8%, ask why: the yield may be high because the price fell on real problems. A yield means little without the payout ratio and steady earnings and cash flow behind it.

Is a stock's dividend safe?

Check three things. First, the payout ratio (dividends ÷ earnings): steady payers usually stay under about 60%. Second, whether free cash flow covers the dividend. Third, the balance sheet. A dividend paid with debt, or larger than free cash flow, is at risk whatever its history.

Are dividends taxable?

In most countries, yes. In the US, qualified dividends are taxed at capital gains rates and other dividends as income. Reinvested dividends are taxed in the year they are paid, even if you never see the cash. This calculator shows figures before tax.

Free tool

Dividend Calculator

Project the income from any dividend stock, from its real payout history and yield.

Try:

The Coca-Cola Company (KO)Yield 2.77% · payout history to 2026-07-03

Your investment

Years

Projected annual dividend income in year 20

$617.05

A 2–5% yield is the range where most durable dividend payers live. The 77% payout ratio is sustainable but worth watching.

Income in year 1: $277.28
Total dividends over 20 years: $8,519
Current yield: 2.77%

Annual dividend income

Adjust the payout data & assumptions

Payout data — from its history, to 2026-07-03

Share price

Annual dividend per share

Dividend growthDefault: its recent growth

%/yr

Your assumptions

Share price growth

%/yr

Monthly contribution

How to project your dividend income

Type a dividend stock, such as KO, and select Calculate income. Its price, dividend and dividend growth fill in.
Set the amount you invest and the number of years. The projection updates as you type.
Read the note under the result. The yield and the payout ratio show how safe the income is.
Open Adjust the payout data to test slower growth or a monthly contribution.
Prefer steady dividend growth to a high yield. Growth compounds. A stretched yield often gets cut.

Projections are hypothetical and before tax. Payout data comes from reported quarterly filings.

How this was calculated

income = shares × DPS, with DPS (dividend per share) growing each year at your rate g.

Shares = investment ÷ share price, plus the shares your monthly contributions buy at each year's projected price. In ticker mode, g starts at the company's own recent dividend growth. Dividends are shown as cash; the DRIP calculator reinvests them.

Projections are hypothetical, before tax and not investment advice.

How much do you need for monthly dividend income?

Money needed = yearly income ÷ yield.

Each month	At 3%	At 4%	At 5%
$500	$200,000	$150,000	$120,000
$1,000	$400,000	$300,000	$240,000
$2,000	$800,000	$600,000	$480,000

A yield above about 6% often means the market doubts the dividend. Check the payout ratio first.

Dividends and total return

Dividend income is only part of the return. The share price also moves. This calculator focuses on the income: how the number of shares, the dividend per share and its growth compound over time.

To reinvest the dividends instead, use the dividend reinvestment calculator. In a taxable account, tax on dividends reduces what you keep.

Popular dividend stocks

Each one opens with that company's real payout history.

All dividend stocks, A to Z

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Questions

Multiply the shares you own by the dividend per share. For a quick estimate, multiply the amount you invest by the dividend yield: $10,000 at a 3% yield pays about $300 a year, usually in four payments. This calculator works from a company's real dividends over the last 12 months.
You need $12,000 a year. At a 3% yield that takes about $400,000. At 4%, about $300,000. A much higher yield shrinks the number, but a very high yield often means the market expects a cut.
Most healthy dividend stocks yield between 2% and 5%. Above about 6–8%, ask why: the yield may be high because the price fell on real problems. A yield means little without the payout ratio and steady earnings and cash flow behind it.
Check three things. First, the payout ratio (dividends ÷ earnings): steady payers usually stay under about 60%. Second, whether free cash flow covers the dividend. Third, the balance sheet. A dividend paid with debt, or larger than free cash flow, is at risk whatever its history.
In most countries, yes. In the US, qualified dividends are taxed at capital gains rates and other dividends as income. Reinvested dividends are taxed in the year they are paid, even if you never see the cash. This calculator shows figures before tax.