Work out dividend income target instantly with clear inputs, formula shown and shareable results.
The capital needed is the target income divided by the portfolio yield. Dividend growth then lifts income on the same capital, so yield on cost rises over time even though the market yield stays roughly constant.
Income target
Capital = income / yield; income in t years = income × (1+g)^t
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
Not on its own. Very high yields often signal a dividend at risk; total return and dividend durability matter more.
It shows how a growing dividend turns a modest starting yield into a substantial income on the money originally invested.