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$944a month
Taking the cash: $658 a month, plus $62,856 collected.
$1,000 a month: not within 20 years. Collecting it today takes $402,777 (about 11,258 shares of SCHD).
| Year | Monthly income | Annual income | Yield on cost | Balance | Money in | Dividends received |
|---|---|---|---|---|---|---|
| Now | $24.83 | $298 | 2.98% | $10,000 | $10,000 | $0.00 |
| 1 | $42.05 | $505 | 3.15% | $17,322 | $16,000 | $298 |
| 2 | $60.89 | $731 | 3.32% | $25,319 | $22,000 | $803 |
| 3 | $81.50 | $978 | 3.49% | $34,054 | $28,000 | $1,533 |
| 4 | $104 | $1,249 | 3.67% | $43,596 | $34,000 | $2,511 |
| 5 | $129 | $1,544 | 3.86% | $54,018 | $40,000 | $3,760 |
| 6 | $156 | $1,868 | 4.06% | $65,404 | $46,000 | $5,304 |
| 7 | $185 | $2,222 | 4.27% | $77,842 | $52,000 | $7,172 |
| 8 | $217 | $2,609 | 4.50% | $91,430 | $58,000 | $9,394 |
| 9 | $253 | $3,033 | 4.74% | $106,274 | $64,000 | $12,003 |
| 10 | $291 | $3,496 | 4.99% | $122,492 | $70,000 | $15,036 |
Track up to 20 holdings free, with each dividend and its pay date.
Dividend history: SCHD · VYM · VIG · JEPI · JEPQ · DGRO · O · KO · JNJ · PG
| Monthly Income | 3% Yield | 4% Yield | SCHD at 2.98% |
|---|---|---|---|
| $500$6,000 a year | $200,000 | $150,000 | $201,388 |
| $1,000$12,000 a year | $400,000 | $300,000 | $402,777 |
| $2,000$24,000 a year | $800,000 | $600,000 | $805,553 |
| $4,167$50,000 a year | $1,666,667 | $1,250,000 | $1,678,236 |
| $5,000$60,000 a year | $2,000,000 | $1,500,000 | $2,013,884 |
| $10,000$120,000 a year | $4,000,000 | $3,000,000 | $4,027,767 |
Yearly income divided by the yield, before tax. Reinvesting and monthly contributions get you there with less up front.
Multiply the shares you own by the annual dividend per share, or the money invested by the dividend yield (the annual dividend per share divided by the share price), then divide by 12 for a monthly figure. $10,000 in SCHD at its 2.98% forward yield pays about $298 a year, or $24.83 a month, before taxes.
Divide the yearly income you want by the yield. $1,000 a month is $12,000 a year: at a 3% yield that takes $400,000, and at a 4% yield $300,000. At SCHD's 2.98% forward yield it is about $402,777. Reinvesting and adding money every month gets you there with less up front; set an Income Goal and the calculator shows the year you reach it.
$2,000 a month is $24,000 a year: about $800,000 at a 3% yield or $600,000 at 4%, and about $805,553 at SCHD's 2.98%. $50,000 a year takes about $1,666,667 at 3% or $1,250,000 at 4%, and $10,000 a month about $4,000,000 or $3,000,000. The table on this page lists each goal at each yield, before tax.
Reinvesting buys more shares with each payment, so next year's income is paid on a bigger position and grows faster than the dividend alone. Taking cash puts the income in your pocket now, and it grows only as fast as the dividend is raised and you add money. The calculator draws both lines, so you can see what reinvesting is worth over your time frame.
Each payment buys more shares: the dividend received divided by the share price. The next payment is paid on the larger share count, so the income grows with every payment as well as with each dividend raise. For example, 100 shares of a $25 stock paying $1 a share a year earn $100, which buys 4 more shares, so next year's dividend is paid on 104 shares. The calculator compounds once a year at today's yield, the same way the Portfolio Forecast does.
In a taxable account, reinvested dividends are taxed in the year they are paid, the same as cash, so you owe tax on income you never received as cash. Reinvesting also means giving up that income today, and it keeps adding to the same holding, which can grow past the share of your portfolio you meant it to be. Many investors reinvest while they are saving and take the cash once they retire.
A picked stock or fund starts at its own 5-year dividend growth rate (the 1-year rate when there is no 5-year record, 8% with neither), capped at 25%, and you can type any rate under Assumptions. Each year the dividend per share grows at that rate. Price growth starts at the same rate, so the yield holds steady; reinvested dividends and monthly contributions buy at today's yield, so price growth moves the balance but not the income. It is the same snowball model the Portfolio Forecast uses.
Set Dividend Tax under Assumptions to what you pay on dividends. Only the after-tax dividend is reinvested, so taxes also slow the compounding, and every income figure is after tax. It opens at 0%, which fits an IRA, a 401(k) or another tax-sheltered account; qualified US dividends are commonly taxed at 15%.
Any stock, ETF, mutual fund or closed-end fund we cover that pays a current dividend. The calculator reads the same price, forward dividend and dividend growth the security's Dividend tab shows. A company that has stopped paying has nothing to project; a custom yield lets you test any yield you like.
Yes, with no account needed. A free account adds a Portfolio that tracks up to 20 holdings and the dividends they pay; Pro runs this projection across your whole portfolio in the Forecast.