VOO Dividend Income Calculator
Estimate your annual, quarterly, and monthly dividend income from VOO — and see how it grows over time with or without reinvestment.
Current Annual Income
DRIP vs Cash — 10-Year Projection
Year-by-Year Breakdown
| Year | Shares (DRIP) | Annual Income (DRIP) | Annual Income (Cash) | Portfolio (DRIP) | Portfolio (Cash) |
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End of Period Summary
This calculator is for illustrative purposes only. Results are based on hypothetical assumptions including a fixed annual return derived from historical averages. Actual investment returns will vary — possibly significantly — due to market conditions, fees, taxes, inflation, and other factors not modeled here. This is not a prediction, guarantee, or recommendation. Consult a licensed financial advisor for personalized projections.
How This Calculator Works
This calculator estimates the dividend income you could receive from VOO based on your current position and projects how that income changes over time. You can enter either a dollar amount to invest or a specific number of shares. The calculator uses VOO's current trailing 12-month dividend of $7.49 per share and a share price of $582.96 as defaults, but you can adjust both to reflect current market conditions.
The projection models two scenarios side by side. In the DRIP scenario, every quarterly dividend payment is reinvested to buy additional VOO shares at the prevailing price, and those new shares then generate their own dividends — compounding your income over time. In the cash scenario, dividends are paid out as cash and your share count stays fixed, so income grows only if the per-share dividend increases. The difference between these two paths grows dramatically over longer time horizons. For a deeper look at VOO's actual payout history, the dividend history page has every quarterly distribution since inception.
The dividend growth rate defaults to 5% per year, which is roughly in line with S&P 500 dividend growth over the past two decades. The price appreciation rate defaults to 8%, approximating the S&P 500's long-term average annual price return (excluding dividends). Both are adjustable so you can model conservative, moderate, or optimistic scenarios. The historical returns calculator shows what VOO actually delivered using real price and dividend data if you want a backward-looking analysis rather than a forward projection.
Keep in mind that dividends are not guaranteed. Companies in the S&P 500 can cut or suspend their dividends, and VOO's payout reflects whatever those 500 companies collectively distribute each quarter. For context on the fund's structure and why it tracks the S&P 500 so closely, see the complete guide to VOO. If you are considering setting up automatic reinvestment, the how to buy VOO guide covers DRIP enrollment at each major brokerage.
Frequently Asked Questions
How much dividend income does VOO pay per share?
VOO currently pays approximately $7.49 per share annually in dividends, distributed as four quarterly payments. Based on a share price of around $582, this equates to a trailing 12-month yield of roughly 1.29%. The exact amount varies each quarter based on dividends collected from the underlying S&P 500 companies.
What is the difference between DRIP and cash dividends?
With DRIP (Dividend Reinvestment Plan), your dividends automatically purchase additional VOO shares, which then generate their own dividends — creating compound growth. With cash dividends, you receive the payment as cash in your brokerage account. Over long periods, DRIP typically produces significantly more total wealth because of compounding, but cash dividends provide immediate income you can spend. Most brokerages including Fidelity, Schwab, and Vanguard offer free DRIP enrollment.
How fast do VOO dividends grow?
VOO's annual dividend has grown at an average rate of roughly 5–7% per year since inception, reflecting the dividend growth of the S&P 500 companies it holds. However, dividend growth is not guaranteed and can vary significantly year to year. In some years growth has exceeded 10%, while in others (such as 2020) dividends were roughly flat or declined slightly. The dividend history page has the full record.
Are VOO dividends taxable?
Yes. VOO dividends are taxable income in the year received, regardless of whether you reinvest them. Most VOO dividends qualify for the lower long-term capital gains tax rate (0%, 15%, or 20% depending on your income). In a Roth IRA, dividends grow and can be withdrawn tax-free. In a traditional IRA or 401(k), dividends are tax-deferred until withdrawal. See the VOO tax guide for details.