See how reinvested dividends — growing year after year — snowball into a rising stream of passive income. Set your starting yield, dividend growth and monthly investing, and watch what your portfolio could pay you each year.
Annual dividend income in year 20
$16,972.76
≈ $1,414.40 per month
13.06% yield on cost
$356,230.20
$118,741.63
$130,000.00
$356,230.20
Dividends are reinvested, so each payout buys more shares that pay their own dividends. These are projections on assumed rates — real yields, dividend growth and prices will differ and are never guaranteed.
Years
Create a free account and your contribution plan — the starting amount plus the monthly investing, over the same years — becomes your goal to track.
This calculator provides simplified estimates for educational purposes only and is not financial advice. Real dividends, dividend growth and investment returns will differ. Consult a qualified financial advisor before making decisions.
The dividend snowball is compounding you can see. Every dividend you reinvest buys more shares, and those shares pay their own dividends the next time around. On top of that, quality companies tend to raise their payout each year, so the same shares throw off more cash over time. Put those two forces together — reinvestment and dividend growth — and your annual income doesn't just rise, it accelerates. The number that captures it is yield on cost: your current annual dividends divided by everything you ever put in. It starts near the yield you bought at and climbs from there. This calculator models both the reinvestment and the dividend growth that most yield-only tools ignore, so the projection reflects how income investing actually compounds. It is a hypothetical projection on the rates you enter — real yields, dividend growth and prices vary and are never guaranteed — and it never depends on any single stock's live data.