Passive income

Dividend Calculator

Project dividend income with initial capital, yield, growth and reinvestment.

SIMULATOR

Your numbers

Recalculates instantly as you move the sliders.

ESTIMATED RESULT€37,574
ACCUMULATED INCOME€207,263
INITIAL YIELD4%
HORIZON20 years

Estimated annual dividend income, including contributions and assumed growth.

Assumption: the projection reinvests the selected contributions and growth, but it does not replace analysing payout, debt, cash generation and dividend sustainability.

Save my €37,574/year. This does not replace analyzing dividend sustainability: payout, debt and growth matter.

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What it solves

This calculator projects dividend income over time from starting capital, dividend yield, dividend growth, contributions and reinvestment assumptions.

How to use it

Enter current capital, average yield, dividend growth rate, contributions and years. The tool estimates annual income and how it evolves.

How it is calculated

First-year income is capital multiplied by yield. Each year, income grows by the dividend growth rate, while the capital base changes with contributions and reinvestment.

Worked example

A $50,000 portfolio with a 3.5% yield generates about $1,750 per year in dividends before tax. Reinvesting those dividends increases the base for future years.

How to interpret it

A high yield is not automatically positive. It can also reflect market concern about sustainability. Yield should be read with payout, debt, cash generation and business quality metrics.

Common mistakes

Common mistakes are chasing the highest yield, ignoring sustainability and forgetting that dividends are taxable.

Assumptions

Assumptions: yield and dividend growth are constant, taxes are not deducted and dividend cuts are not modeled.

Sources

CNMV — Investor Education · Spanish Tax Agency (AEAT)

Learn the context

Understand Dividend Calculator better

Pair the simulation with a clear explanation, examples, and limits before using the result as educational context.

Read the guide

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Frequently asked questions

Dividend Calculator, with context

What is yield?

Annual dividend divided by price.

Reinvest or take the cash?

Reinvestment maximizes compounding; taking cash provides current income. It depends on your goal.

Are dividends taxed?

Yes, in Spain they are generally taxed in the savings tax base.

Is a very high yield a good sign?

Not necessarily. It can be a warning that the market expects a cut.

Illustrative results for educational purposes · Educational information, not financial advice.