Dividend Calculator

What it does

How to use Dividend Calculator

1. 1
   Enter a ticker symbol

   Type a symbol like SCHD, VOO, MSTY, or AAPL in the search box. The autocomplete shows current yield and price. High-variance ETFs like MSTY show a ⚠ badge.

2. 2
   Enter shares or dollar amount

   Toggle between entering a share count or a dollar investment amount. Optionally enter your original cost basis to calculate yield-on-cost.

3. 3
   See your Quick Yield results

   Instantly see annual income, monthly income, quarterly income, and yield on cost. The monthly income calendar shows which months your selected ETF or stock pays out.

4. 4
   Run a DRIP projection

   Switch to DRIP Projection mode. Set your time horizon (1–40 years), monthly contributions, and dividend growth assumptions. The chart shows DRIP vs no-DRIP side by side.

5. 5
   Build a portfolio

   Use Portfolio mode to add multiple positions. The monthly income calendar shows total income by month, revealing any gaps in your income stream.

When to use this

Frequently Asked Questions

What is dividend yield and how is it calculated?

Dividend yield = (annual dividend per share ÷ current share price) × 100. If SCHD pays $0.97/year and trades at $27.85, the yield is 3.48%. This calculator uses TTM (trailing twelve months) dividend data. Yield changes daily as the price moves — the dividend is relatively fixed until the next announcement.

What is DRIP (dividend reinvestment)?

DRIP stands for Dividend Reinvestment Plan. Instead of receiving dividend payments as cash, you use the dividend to buy more shares automatically. Over time, those extra shares generate their own dividends, which buy more shares — a compounding effect that significantly outperforms holding cash dividends over 10–20+ year horizons.

Why does MSTY show such a high yield? Is it sustainable?

MSTY (YieldMax MSTR Option Income Strategy ETF) generates income by selling covered-call options on MicroStrategy (MSTR) stock. The yield reflects the option premiums collected — often 40–60% annualized. However, these distributions are highly variable month-to-month and the NAV (price per share) tends to decline over time as the fund distributes more than it earns in capital appreciation. This calculator models NAV erosion explicitly — the DRIP projection shows how principal decreases even as distributions continue.

What is NAV erosion and why does it matter for MSTY, TSLY, and similar ETFs?

NAV erosion means the fund's share price gradually declines over time. Covered-call ETFs like MSTY, TSLY, and CONY pay out most of their earned premiums as distributions, leaving little to support the share price. The share price also suffers when the underlying stock (MSTR, TSLA, etc.) appreciates significantly because the sold calls cap upside. The result: very high distributions but a shrinking principal. This calculator's DRIP mode has a NAV erosion input that defaults to each ETF's historical erosion rate.

What is the difference between qualified and non-qualified dividends?

Qualified dividends are taxed at the lower long-term capital gains rates (0%, 15%, or 20% depending on income). Most S&P 500 stocks and broad-market ETFs like SCHD, VOO, and VIG pay qualified dividends. Non-qualified dividends — paid by most covered-call ETFs including JEPI, JEPQ, MSTY, and QQQI — are taxed at your ordinary marginal income tax rate (up to 37%). This is a significant difference: $10,000 in JEPI income taxed at 22% costs $2,200 in taxes vs $1,500 for qualified dividends.

How does the Roth IRA account type affect my projections?

In a Roth IRA, dividends grow tax-free with no annual tax drag. Reinvested dividends compound at their full gross amount. Over 20–30 years, this can mean tens of thousands more in terminal value compared to a taxable account with the same investments, especially for non-qualified dividend payers like JEPI or MSTY where the taxable drag is highest.

How does SCHD compare to VOO for dividend income?

SCHD focuses on high-quality dividend-paying stocks with a ~3.5% yield and strong 10%+ annual dividend growth history. VOO (S&P 500) has a ~1.3% yield but stronger total return potential. Over 20 years with DRIP enabled, SCHD typically produces more dividend income and a higher yield on original cost due to dividend growth. VOO generally produces higher total portfolio value from price appreciation. Use the comparison in Portfolio mode or run DRIP projections for each to see the tradeoff at your specific time horizon.

What data sources power this calculator?

The ticker database is a pre-built static dataset of 100+ dividend stocks and ETFs, hand-curated with validated distribution types, historical yield data, and YieldMax NAV erosion estimates. Data is updated periodically — each ticker shows a "data as of" date. For time-sensitive decisions, verify current yields and distributions on the ETF issuer's website or your broker.

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