Dividend Yield And Growth
Dividend comparison
Compare two dividend-paying stocks
Assumes dividends are reinvested annually at an unchanged share price, with no taxes or trading fees. Stock price appreciation is not modeled.
Comparison results
Potential dividend growth
Higher projected value
Company 1 · Total return
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Company 2 · Total return
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Company 1 · Ending yield on cost
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Company 2 · Ending yield on cost
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Growth of $10,000 with dividends reinvested
Dividend yield on original cost
Yield on original cost excludes additional shares purchased through dividend reinvestment.
See how dividend investments fit into your retirement plan
With WealthTrace, you can project investments, dividend income, taxes, and retirement withdrawals together.
Start a free trialDividend Growth Calculator Definitions
Dividend Yield
The annual dividend payment expressed as a percentage of the stock's current price.
For example, a $50 stock paying $2 in annual dividends has a dividend yield of 4%.
Dividend Growth Rate
The expected annual percentage increase in a company's dividend payments.
For example, if a stock pays $2 per share annually and its dividend grows by 6%, the annual dividend would increase to $2.12 the following year.
Number of Years
The number of years you want to compare the dividend growth and projected returns of the two investments.
Compounded Dividend Return
The cumulative percentage return generated by dividends over the selected period, assuming dividends are reinvested annually.
This calculation excludes changes in the underlying stock price.
Annual Dividend Return
The annualized return generated by dividends over the selected period, including the effects of reinvestment.
This allows you to compare dividend performance across different time periods.
Yield on Cost
The annual dividend income expressed as a percentage of your original investment cost.
For example, if you purchased a stock for $50 and its annual dividend grows to $4 per share, your yield on cost would be 8%.
Important Calculator Assumptions
This calculator assumes dividends grow at a constant annual rate and are reinvested annually. It does not account for stock price changes, taxes, or transaction costs.
Actual dividend payments may vary, and companies can reduce or eliminate their dividends.
Find Your Best Dividend Fit
Use WealthTrace to compare different dividend yields and growth rates and find which produces more income over time.
