Dividend Income Calculator
Calculate your annual dividend income from stocks. Enter your investment amount and dividend yield to project monthly and yearly passive income.
What this calculator does
- Calculates annual dividend income from your investments
- Shows monthly income breakdown for budgeting
- Projects growth with dividend reinvestment (DRIP)
- Helps plan your passive income goals
How to Use
Enter investment amount
Total value invested in dividend stocks
Enter dividend yield
Average yield of your holdings (e.g., 4%)
Select currency
Choose INR, USD, GBP, or other currency
View annual income
See projected yearly dividends
Check monthly amount
View equivalent monthly passive income
Plan reinvestment
See how DRIP grows income over time
Example Calculations
Basic Dividend Income
You invest ₹10,00,000 in a portfolio of dividend stocks with an average yield of 4%.
This is before taxes. Actual income depends on dividend payment frequency and tax deductions.
With Dividend Reinvestment (10 Years)
Same ₹10,00,000 at 4% yield, but you reinvest all dividends. Assuming 8% annual stock price growth:
Reinvesting dividends compounds your returns. Your annual income more than doubles in 10 years.
Understanding Dividend Yields
| Yield Range | Classification | Typical Examples |
|---|---|---|
| 0% - 2% | Low Yield | Growth stocks (TCS, Infosys, Apple) |
| 2% - 4% | Moderate Yield | Blue chips (HDFC Bank, ITC, Coca-Cola) |
| 4% - 6% | High Yield | Utilities, mature companies (Coal India, ONGC) |
| Above 6% | Very High Yield | REITs, some PSUs (caution: check sustainability) |
Dividend Income by Investment Amount (4% Yield)
| Investment | Annual Income | Monthly Income |
|---|---|---|
| ₹5,00,000 | ₹20,000 | ₹1,667 |
| ₹10,00,000 | ₹40,000 | ₹3,333 |
| ₹25,00,000 | ₹1,00,000 | ₹8,333 |
| ₹50,00,000 | ₹2,00,000 | ₹16,667 |
| ₹1,00,00,000 | ₹4,00,000 | ₹33,333 |
Note: Actual yields vary. Some stocks pay higher (5-7%) while growth stocks pay little or nothing.
Frequently Asked Questions
Key Terms
Dividend Yield
Annual dividend per share divided by stock price, expressed as a percentage. A ₹100 stock paying ₹4 annually has a 4% yield.
Dividend Payout Ratio
Percentage of earnings paid as dividends. A 50% payout ratio means half of profits go to shareholders.
DRIP
Dividend Reinvestment Plan. Automatically reinvests dividends to buy more shares, compounding returns.
Ex-Dividend Date
The date by which you must own shares to receive the upcoming dividend. Buy after this date and you miss the payment.
Record Date
The date when the company checks its records to determine dividend-eligible shareholders.
Dividend Aristocrats
Companies that have increased dividends for 25+ consecutive years. Known for reliability and stability.
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Disclaimer: This calculator provides estimates for educational purposes. Actual dividend income depends on company performance, dividend declarations, and market conditions. Dividends can be reduced or eliminated at any time. Past dividends do not guarantee future payments.
