Required asset calculation
The monthly dividend goal is multiplied by 12, then divided by the expected annual dividend yield.
Monthly Dividend Goal Calculator
How much do you need
for your monthly dividend goal?
Estimate the assets required for your dividend goal, then project the path from current assets and monthly investing.
How it works
Required assets and the path
are shown separately.
Two ways to plan
Enter a monthly investment to estimate the goal date, or enter a target period to calculate the monthly investment required.
Values shown in the chart
The same dividend yield is applied to projected assets at each point. The chart does not forecast actual company dividend growth.
Planning for a $1,000 monthly dividend
This example uses a 4% dividend yield, $10,000 already invested, a 6% total return, and a 10-year target.
- Assets required
- $300,000
- Monthly investment
- $1,720
- Monthly dividend goal
- $1,000
The required asset is based on dividend yield. The path to build that asset uses a separate total-return assumption. These two rates answer different questions.
Frequently asked questions
How are the required assets calculated?
The monthly goal is multiplied by 12 and divided by the annual dividend yield. At 4%, a $1,000 monthly goal requires $300,000.
Why are total return and dividend yield entered separately?
Total return estimates how assets may grow while you build the portfolio. Dividend yield estimates income after the target asset has been reached.
Does a $1,000 goal mean $1,000 will be paid every month?
No. It is a pre-tax monthly average of the annual estimate. Actual payment dates and amounts vary by holding.