Methodology
How the Dividend Calculator works
How Tallivo models dividend reinvestment (DRIP), dividend growth, and yield on cost.
The formula
shares₊ = shares + (net dividends + contributions) / share price
Step by step
- Each year, dividends are paid on your current share count at the current dividend-per-share.
- With DRIP on, dividends buy more shares at the projected price; with it off, they accumulate as cash.
- The dividend per share grows each year by your dividend-growth rate; the share price grows by your appreciation rate.
- Yield on cost = current annual dividend income ÷ what you originally invested — it rises as payouts and share count grow.
Assumptions & limitations
- Constant yield, dividend-growth, and appreciation rates — real dividends can be cut and prices fall.
- Pre-tax; qualified dividends are normally taxed at capital-gains rates (tax-free in a Roth).
- A normalized model — results scale with your inputs and don't track a specific ticker.
Sources
Model reviewed 2025. Figures are planning estimates, not a loan offer — this is not financial advice.