Work out dividend income requirement instantly with clear inputs, formula shown and shareable results.
Dividend income must be grossed up for tax before dividing by the portfolio yield. Because dividends grow, the yield on original cost rises over time — which is what makes a modest starting yield workable over a long retirement.
Dividend capital
Capital = target / (1 - tax) / yield; yield on cost after t years = yield × (1+g)^t
Figures are estimates for planning only. Prices, returns, inflation and personal circumstances all change. This is not financial or tax advice — speak to a qualified adviser before making decisions.
Not necessarily. A lower yield with reliable growth often produces more income within a decade and carries less risk.
No. They are discretionary and can be cut, which is why concentration in a few high-yield names is dangerous.