What is a good dividend yield?

A yield of 2–4% is considered healthy and sustainable. Yields above 5% can signal risk — the company may be paying out more than it can sustain. Focus on total return (yield + growth) rather than yield alone.

What is yield on cost?

Yield on cost measures your dividend income relative to your original purchase price, not the current market price. If a stock's dividend grows over time, your yield on cost rises — rewarding patient long-term holders.

How are dividends taxed?

Qualified dividends are taxed at long-term capital gains rates (0%, 15%, or 20% depending on income). Non-qualified dividends are taxed as ordinary income. Holding shares for 60+ days around the ex-dividend date typically qualifies the dividend.

What are Dividend Aristocrats?

Dividend Aristocrats are S&P 500 companies that have increased their dividend for 25+ consecutive years. They are considered among the most reliable dividend payers, with track records through recessions and market downturns.

How should I use the sector presets?

The built-in presets are planning shortcuts, not recommendations. They bundle common yield and growth assumptions for aristocrat, utility, REIT, and energy-heavy income mixes so you can compare how different portfolio styles change future income.

Dividend & Portfolio Builder Calculator – Yield, Income & DRIP Projections

Free dividend calculator with portfolio builder mode. Estimate blended yield, annual and monthly income, DRIP compounding projections, and compare aristocrat or sector-based planning presets.

Last updated: 2026-03-07

Calculation History (0)

No calculations yet. Complete a calculation to see it here.

Examples

How Dividends Work

Dividends are cash payments companies distribute to shareholders from their profits. Dividend investing focuses on building a portfolio that generates reliable passive income.

Key Metrics

Dividend Yield: Annual dividend ÷ share price — measures current income relative to price
Yield on Cost: Future dividend ÷ original purchase price — tracks growing income on your initial investment
Dividend Growth Rate: Annual percentage increase in the dividend — Dividend Aristocrats grow dividends 25+ consecutive years

Dividend Yield Benchmarks

S&P 500 average: ~1.3–1.5%
Dividend Aristocrats: ~2.5–3.5%
REITs: ~3–6%
High-yield stocks: 5%+ (higher risk)

The Power of Dividend Growth

A stock with a modest 2.5% yield but 10% annual dividend growth will pay more income than a 5% yield stock with 0% growth within about 8 years. Time and growth compound powerfully.

Frequently Asked Questions

What is a good dividend yield?: A yield of 2–4% is considered healthy and sustainable. Yields above 5% can signal risk — the company may be paying out more than it can sustain. Focus on total return (yield + growth) rather than yield alone.
What is yield on cost?: Yield on cost measures your dividend income relative to your original purchase price, not the current market price. If a stock's dividend grows over time, your yield on cost rises — rewarding patient long-term holders.
How are dividends taxed?: Qualified dividends are taxed at long-term capital gains rates (0%, 15%, or 20% depending on income). Non-qualified dividends are taxed as ordinary income. Holding shares for 60+ days around the ex-dividend date typically qualifies the dividend.
What are Dividend Aristocrats?: Dividend Aristocrats are S&P 500 companies that have increased their dividend for 25+ consecutive years. They are considered among the most reliable dividend payers, with track records through recessions and market downturns.
How should I use the sector presets?: The built-in presets are planning shortcuts, not recommendations. They bundle common yield and growth assumptions for aristocrat, utility, REIT, and energy-heavy income mixes so you can compare how different portfolio styles change future income.

Related Calculators

Build Passive Income

See how dividend growth compounds your income over time. Bookmark this calculator and model your portfolio before your next investment.

Browse all finance tools Join the newsletter

Was this calculator helpful?

Your feedback helps us improve future calculators.

Disclaimer

Calculations are estimates for informational purposes only and do not constitute financial advice. Consult a qualified financial professional before making financial decisions.

Embed this calculator

Copy the code below to embed this calculator on your website or blog. It's free — no API key needed.

Iframe embed code

<iframe
  src="https://calc.mintloop.dev/embed/finance/dividend-calculator"
  width="100%"
  height="600"
  frameborder="0"
  title="Dividend & Portfolio Builder Calculator – Yield, Income & DRIP Projections"
  loading="lazy">
</iframe>

Optional: auto-resize script

<script>
var CALC_HUB_ORIGIN = 'https://calc.mintloop.dev';
window.addEventListener('message', function(e) {
  if (e.origin !== CALC_HUB_ORIGIN) return;
  if (!e.data || e.data.type !== 'calc-hub-resize') return;
  var frames = document.querySelectorAll('iframe[src*="calc.mintloop.dev"]');
  frames.forEach(function(f) {
    if (f.contentWindow === e.source) {
      f.style.height = String(Math.max(0, Number(e.data.height) || 0)) + 'px';
    }
  });
});
</script>