What is Yield on Cost?

Yield on cost is the dividend yield calculated using your original purchase price rather than the current market value. It shows the return on your actual investment and typically increases over time as companies raise dividends.

How often are dividends paid?

Most U.S. companies pay dividends quarterly (4 times per year). Some pay monthly (often REITs and certain funds), semi-annually (common for European stocks), or annually.

What is a good dividend yield?

A healthy dividend yield typically ranges from 2% to 6%. Extremely high yields (above 8-10%) can be a warning sign that the stock price has dropped significantly or the dividend may be cut.

What is DRIP and why should I use it?

DRIP (Dividend Reinvestment Plan) automatically reinvests your dividend payments to buy more shares. This creates a compounding effect that can significantly boost long-term returns without requiring additional capital.

Yes, dividends are generally taxable. Qualified dividends (from most U.S. stocks held 60+ days) are taxed at lower capital gains rates. Non-qualified dividends are taxed as ordinary income.

Can companies reduce or stop paying dividends?

Yes, companies can cut or suspend dividends during financial difficulties. Look for 'Dividend Aristocrats'—companies that have increased dividends for 25+ consecutive years—for more reliable income.

How do I find a stock's dividend information?

Check the company's investor relations page, financial websites like Yahoo Finance or Seeking Alpha, or your brokerage platform for dividend per share, payment dates, and yield information.

Dividend Calculator - Bunny Calculator

Complete User Guide

Our Dividend Calculator helps you plan your passive income strategy. Here's how to use it:

Step 1: Enter the current stock price or your average purchase price.

Step 2: Enter the dividend amount paid per share (per payment period).

Step 3: Enter the number of shares you own or plan to buy.

Step 4: Select the payment frequency (Quarterly, Monthly, Semi-annually, or Annually).

Step 5: Click 'Calculate' to see your projected annual dividend income, dividend yield, and yield on cost.

Optionally, explore DRIP scenarios to see how reinvesting dividends can compound your returns over time.

About Dividend Calculator

Dividend investing is a powerful strategy for building passive income and long-term wealth. Unlike growth investing that relies solely on price appreciation, dividend investing provides regular cash payments regardless of market conditions.

The dividend yield shows how much income you're receiving relative to the current stock price—a 3% yield means you'll receive $30 annually for every $1,000 invested. However, extremely high yields (above 8-10%) can be a red flag indicating a falling stock price or unsustainable payout.

Yield on Cost (YOC) is a valuable metric for long-term investors. As companies increase their dividends over time and you continue to hold, your YOC grows while your original investment stays the same. A stock bought years ago might show a 2% current yield but a 10%+ YOC for early investors.

Dividend Reinvestment Plans (DRIP) allow you to automatically reinvest dividends to purchase more shares. This compounding effect can dramatically increase total returns over decades, turning modest investments into substantial portfolios.

Frequently Asked Questions

Dividend Calculator