What this calculator does
A dividend is a payment a company or fund makes to its shareholders out of its profits. Enter the amount invested and its dividend yield, and the calculator shows the yearly, monthly and per-payout income, the 2026 federal tax on it, and how the income could grow over the years if you reinvest the dividends and the dividend per share grows at the rate you choose.
How it is worked out
First-year dividends = amount invested × dividend yield. Each later year, the dividend per share grows by your growth rate; with reinvestment, each year's dividends buy more shares at the same price, so the next year's income is paid on more shares. Example: $50,000 at a 3% yield pays $1,500 in the first year, or $375 every three months. With 4% yearly dividend growth and reinvestment, the tenth year pays about $2,917.
How dividends are taxed in 2026
- Qualified dividends, from most U.S. companies and many foreign ones held for long enough, are taxed at the long-term capital gains rates: 0%, 15% or 20%. In 2026 the 0% rate applies to taxable income up to $49,450 for single filers and $98,900 for married couples filing jointly, and the 20% rate starts above $545,500 and $613,700 (IRS Rev. Proc. 2025-32).
- Ordinary (nonqualified) dividends are taxed at the same rates as wages.
- The 3.8% net investment income tax can apply when modified adjusted gross income is above $200,000 ($250,000 married filing jointly).
- Your broker reports dividends on Form 1099-DIV: box 1a is total ordinary dividends and box 1b is the qualified part.
Frequently asked questions
What is a dividend yield?
The yearly dividends per share divided by the share price. A $100 share that pays $3 a year has a 3% yield. The yield changes when the price or the dividend changes.
Are dividends guaranteed?
No. Companies and funds can raise, cut or stop dividends at any time, and the share price can fall. The growth rate in the calculator is your own assumption.
What is the difference between qualified and ordinary dividends?
Qualified dividends meet IRS rules on the type of company and how long you held the shares, and get the lower 0%, 15% or 20% rates. Other dividends are ordinary and taxed like wages. Form 1099-DIV shows which is which.
Are dividends in a 401(k) or IRA taxed?
Not each year. In a traditional account you pay tax when you take money out; qualified withdrawals from a Roth account are tax-free.
Is my information saved?
No. The numbers stay on this page.