Skip to content
ENExplore Calculators

Dividend Income Requirement Calculator

Work out dividend income requirement instantly with clear inputs, formula shown and shareable results.

About Dividend Income Requirement Calculator

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.

Formula

Dividend capital

Capital = target / (1 - tax) / yield; yield on cost after t years = yield × (1+g)^t

Worked example

With the default values below, Dividend Income Requirement Calculator returns Portfolio Value Required of $27,343,750. Change any input above and every figure here is recalculated in your browser.

Inputs used

Target Annual Dividend Incomeminimum 0
700,000
Portfolio Dividend Yieldaccepts 0.1–15 %
3.2 %
Tax On Dividendsaccepts 0–60 %
20 %
Expected Dividend Growthaccepts 0–25 %
7 %

Results

Portfolio Value Required
$27,343,750
Gross Dividend Needed
$875,000.00
Net Income After Ten Years Of Growth
$1,377,005.95
Yield On Original Cost In Ten Years
6.295%

Step by step

  1. 1Values used
  2. 2Dividend capital
  3. 3Portfolio Value Required= 27,343,750
  4. 4Gross Dividend Needed= 875,000.00
  5. 5Net Income After Ten Years Of Growth= 1,377,005.95
  6. 6Yield On Original Cost In Ten Years= 6.295

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation or fees or charges into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • 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.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

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.

Frequently Asked Questions

Is a high starting yield better?

Not necessarily. A lower yield with reliable growth often produces more income within a decade and carries less risk.

Are dividends guaranteed?

No. They are discretionary and can be cut, which is why concentration in a few high-yield names is dangerous.

Related Calculators

Dividend Income Requirement Calculator | Calcrivo