At a 3.5% starting yield and a 15% dividend tax rate, it takes $504,202 invested today to produce $1,250 a month in net dividend income. Starting from $0 and contributing $1,000/month with dividends reinvested, the calculator's default assumptions reach that income in year 17.
- Monthly income goal
- $1,250
- Lump sum needed today
- $504,202
- Starting yield used
- 3.5%
- Dividend tax rate used
- 15%
- Years to reach from $0 (contributing $1,000/mo)
- 17
Projected path from $0
| Year | Balance | Contributed | Monthly income run rate |
|---|---|---|---|
| 0 | $0 | $0 | $0 |
| 5 | $70,014 | $60,000 | $191 |
| 10 | $166,946 | $120,000 | $502 |
| 15 | $304,993 | $180,000 | $1,009 |
| 17 | $376,467 | $204,000 | $1,294 |
| 20 | $507,202 | $240,000 | $1,847 |
| 25 | $811,881 | $300,000 | $3,255 |
| 30 | $1,284,345 | $360,000 | $5,670 |
| 35 | $2,039,076 | $420,000 | $9,910 |
| 40 | $3,282,811 | $480,000 | $17,564 |
| 45 | $5,401,182 | $540,000 | $31,815 |
These figures assume a constant 5% annual dividend growth and 3% annual price growth, dividends reinvested (DRIP), and no change in contribution amount. Real markets do not grow in a straight line; treat this as a planning illustration, not a guarantee.
Open this lump-sum scenario Open the $0-start growth path
Methodology
The model starts at a notional $100 share price. Starting shares equal initial portfolio value divided by 100; starting annual dividend per share equals 100 × yield.
Related goals
Put the explanation to work.
Change the assumptions, compare the results, and export the numbers without creating an account.
Open DividendPathCalc