Dividend Income Calculator

See how much passive income your dividend portfolio generates — now and in the future.

Portfolio & Dividend Details

Portfolio Value ($)

Dividend Yield (%)

S&P 500 average: ~1.3% · High-yield ETFs: 3–5%

Annual Contribution ($)

Expected Stock Growth (%/year)

Dividend Growth Rate (%/year)

Years to Project

Federal Tax Bracket

Qualified Dividends (%)

Most US stock dividends are 80–100% qualified

Reinvest dividends (DRIP)

Your Dividend Income

Current Monthly

$583

Current Annual

$7,000

Year 10 Monthly

$1,588

After-Tax Monthly

$485

Portfolio in Year 10

$645,337

Total Dividends Collected

$124,836

Annual Tax on Dividends

$1,176

Year-by-Year Projection

Year	Portfolio	Annual Dividend	Monthly	Total Collected
1	$200,000	$7,000	$583	$7,000
2	$233,000	$8,003	$667	$15,003
3	$269,313	$9,077	$756	$24,079
4	$309,241	$10,228	$852	$34,307
5	$353,116	$11,461	$955	$45,768
6	$401,295	$12,781	$1,065	$58,549
7	$454,166	$14,194	$1,183	$72,743
8	$512,152	$15,707	$1,309	$88,450
9	$575,710	$17,327	$1,444	$105,777
10	$645,337	$19,059	$1,588	$124,836

How Much Do You Need?

Portfolio required to generate target monthly dividend income at 3.5% yield:

Monthly Income Goal	Portfolio Needed
$500/month	$171,429
$1,000/month	$342,857
$2,000/month	$685,714
$3,000/month	$1,028,571
$5,000/month	$1,714,286

Dividend Investing Tips

1.At 3.5% yield, you need $685,714 to generate $2,000/month
2.Reinvesting dividends compounds your growth — this is the most powerful factor over time
3.80% of your dividends are qualified — taxed at 15% instead of 24%
4.Dividend growth rate matters more than current yield for long-term income — a 2% yield growing 10%/year beats a 5% yield growing 0%
5.Hold dividend stocks for 60+ days around the ex-dividend date to qualify for the lower qualified dividend rate

Projections assume constant rates and are not guaranteed. Actual dividends and returns will vary. Past performance does not guarantee future results.

Building Passive Income with Dividends

Dividend investing is one of the most reliable ways to build passive income. Companies that pay dividends tend to be established, profitable businesses. The S&P 500's average dividend yield is about 1.3%, but high-yield dividend ETFs like SCHD, VYM, and HDV offer 3–4%. The real power comes from dividend reinvestment (DRIP) and dividend growth — a stock yielding 2% that grows dividends 10% per year will yield 5.2% on your original cost after 10 years.

Dividend Tax Rates (2026)

Income Bracket	Qualified Dividend Rate	Ordinary Dividend Rate
10–12% bracket	0%	10–12%
22–35% bracket	15%	22–35%
37% bracket	20%	37%

High earners may also owe the 3.8% Net Investment Income Tax (NIIT) on top of these rates.

Portfolio Needed for Monthly Dividend Income

Monthly Goal	At 2% Yield	At 3.5% Yield	At 5% Yield
$500/month	$300,000	$171,429	$120,000
$1,000/month	$600,000	$342,857	$240,000
$2,000/month	$1,200,000	$685,714	$480,000
$3,000/month	$1,800,000	$1,028,571	$720,000
$5,000/month	$3,000,000	$1,714,286	$1,200,000

Frequently Asked Questions

Should I choose high yield or high dividend growth?

It depends on your timeline. If you need income now, high-yield stocks (4–6%) provide more immediate cash flow. If you're building for 10+ years, dividend growth stocks (2% yield but 8–12% annual dividend growth) will overtake high-yield stocks and provide better total returns. Most investors benefit from a blend of both strategies.

Are dividends better in taxable or retirement accounts?

High-yield, tax-inefficient investments (REITs, bonds, ordinary dividends) belong in tax-advantaged accounts (IRA, 401k). Qualified dividend stocks are more tax-efficient and work well in taxable brokerage accounts where you benefit from the 0–20% qualified rate instead of ordinary income rates.