Tools 5 min read

Dividend Calculator

See how dividend investing can build a passive income stream that grows over time through compounding.

The Power of Dividend Compounding

Reinvestment creates exponential growth.

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€10,000 invested at 3.5% dividend yield, reinvested for 30 years with 7% total return: Without reinvestment: €40,000. With reinvestment: €76,000. The difference: reinvested dividends buy more shares, which generate more dividends, which buy even more shares. This snowball effect is how ordinary investors build extraordinary wealth.

Dividend Yield vs Total Return

Look at the whole picture.

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A 5% dividend yield stock that drops 10% per year is worse than a 1.5% yield stock that grows 15% per year. Total return = Capital appreciation + Dividend income. High yield can signal: Mature business (OK), or declining price (dangerous). Always look at dividend growth rate, payout ratio, and total return together.

Tax on Dividends in Europe

What you keep matters most.

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Dividend tax rates: Portugal 28%, Germany 26.375%, France 30% (flat tax), Ireland 51% (income tax), Netherlands 0% (wealth tax instead). Strategies to minimize: Use accumulating ETFs (defer tax), invest through tax-advantaged accounts, consider domicile (Ireland-based ETFs have better US withholding tax treatment). Always calculate after-tax yield.