Dividend Income Planner
Plan and track your dividend income portfolio. Add your holdings to see monthly income projections, payment schedules, and how dividend growth can increase your yield on cost over time.
Monthly Income Target
Current Monthly Dividend Income
Portfolio Yield: 3.37%
Progress to Target
4.3% of $2,000/month goal
Need $682,202 more invested at 3.4% yield
Monthly Income Distribution
Note: Quarterly dividends shown in typical payment months (Mar, Jun, Sep, Dec). Actual payment dates vary by company.
Your Dividend Holdings
Yield on Cost Projection (5% Dividend Growth)
| Year | Annual Dividend | Monthly Income | Yield on Cost |
|---|---|---|---|
| Year 0 | $1,030 | $86 | 3.37% |
| Year 1 | $1,082 | $90 | 3.54% |
| Year 5 | $1,315 | $110 | 4.30% |
| Year 10 | $1,678 | $140 | 5.48% |
| Year 15 | $2,142 | $178 | 7.00% |
| Year 20 | $2,734 | $228 | 8.93% |
Building Dividend Income
Dividend Growth Investing
Focus on companies with a history of increasing dividends. A 3% yield growing at 7% annually becomes a 6% yield on cost in 10 years.
Monthly vs Quarterly
REITs and some funds pay monthly, providing smoother income. Most stocks pay quarterly. Diversify payment schedules for consistent cash flow.
Yield Traps
Very high yields (8%+) often signal trouble. The dividend may be cut. Focus on sustainable payout ratios and dividend growth history.
Frequently Asked Questions
How much do I need invested to live off dividends?
The formula is: Required Investment = Annual Income Need ÷ Portfolio Yield
| Monthly Income | At 3% Yield | At 4% Yield | At 5% Yield |
|---|---|---|---|
| $2,000 | $800,000 | $600,000 | $480,000 |
| $4,000 | $1,600,000 | $1,200,000 | $960,000 |
| $6,000 | $2,400,000 | $1,800,000 | $1,440,000 |
What is a good dividend yield?
A sustainable dividend yield is typically 2-4% for most quality stocks. Yields above 5-6% may indicate:
- Higher risk or declining stock price
- Unsustainable payout ratio
- Potential dividend cut ahead
Focus on dividend growth history and payout ratio rather than just current yield.
What is yield on cost?
Yield on cost (YOC) is your annual dividend divided by your original purchase price, not the current price. Example:
- You bought stock at $50/share
- It now pays $3/year in dividends
- Your yield on cost = $3 ÷ $50 = 6%
With dividend growth, your YOC increases over time even if you don't add more money.
Should I reinvest dividends or take the cash?
- During accumulation: Reinvest (DRIP) to accelerate compounding
- In retirement: Take cash for living expenses
- Tax consideration: Qualified dividends may be more tax-efficient than selling shares