Dividend Income and Reinvestment Calculator

Use this calculator to explore how dividend income might change over time. Enter your current holding, assumptions for dividend and share-price growth, any monthly contribution and the number of years you want to project.

You can compare a scenario where dividends are taken as income with one where they are reinvested to buy more shares. You can also set a target monthly dividend income to see whether, and when, the simulation reaches it.

How the calculation works

Your current annual dividend income is based on the number of shares held and the annual dividend paid per share. The calculator also shows this as a monthly income equivalent.

For the projection, share-price growth and monthly contributions are simulated each month. Dividends are paid quarterly. If reinvestment is selected, those dividends buy additional shares at the simulated share price at that time.

The results show projected annual dividend income, its monthly equivalent, total dividends received, shares held and the simulated portfolio value. If you enter a target monthly income, the calculator reports when it is reached. If the target is not reached during your selected projection, the result will say so.

This is a scenario based on the figures and growth assumptions you provide. It is intended to help you understand how contributions, dividend growth, share-price changes and reinvestment can affect the result.

Important information

• All figures are shown before tax.
• Dealing fees are not included.
• Dividend rates and share prices can fall as well as rise.
• Growth assumptions are applied for illustration and are not a forecast.
• A target income date is only shown if the target is reached within your selected projection.
• The results are guidance only. They are not financial, investment or tax advice.