How much dividend income can I build?
$500/month of dividend income needs ~$150K invested at 4% yield. Or ~$200K at 3%. Run the schedule, see how reinvesting accelerates the timeline.
How the math works
Each month: portfolio value × monthly yield = dividend payment. Reinvested dividends + new contributions buy more shares, which pay more dividends next period. The dividend snowball compounds two ways: from share count growth (reinvestment) and dividend-per-share growth (company increases).
Two output schedules: portfolio value over time, and the year your dividend income crosses your monthly target.
The yield-vs-growth trade-off: a 5% yield with flat dividends pays more today; a 2% yield growing 8%/year pays more eventually. Crossover is typically year 12-15 depending on growth rate. The calculator lets you set both yield and dividend growth rate independently.
Defaults: 3% starting yield, 6% dividend growth, 7% price appreciation. Override based on your specific holdings (broad-market ETFs ~1.5% yield; high-dividend ETFs ~3-4%; individual high-yield stocks 5-7%+).
Math runs locally. Inputs never leave your browser. Source on github.
Real-world scenarios
- $500/month income → ~$150K at 4% yield, or ~$200K at 3% — working backwards from a target. The 17-year reality from a $500/month contribution.
- $500/month invested: dividend timeline at 10, 20, 30 years — the snowball effect, plus when high-yield-flat beats low-yield-growing and vice versa.