Your holding
Tax starts at 0 because dividend taxation differs by country and account. Enter yours.
Yield moves with the price, not just the payout
Dividend yield is the payment divided by the price, so a falling share price pushes the yield up on its own. An unusually high yield often means the market has marked the company down, not that it is unusually generous — and companies in that position are the likeliest to cut.
Dividends are decided, not promised
Unlike interest on a deposit, a dividend is a decision the board makes each period. It can be reduced or skipped when results turn. This assumes the yield you enter simply continues, so treat the output as an illustration rather than a cash flow you can count on.
Tax is left to you
Dividend taxation varies enormously — withheld at source in some countries, assessed with other income in others, and often nil inside a tax-sheltered account. The rate field starts at zero. Put in what applies to you and the net figures update.
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Frequently asked questions
Q. Why does the required capital jump when I lower the yield?
Because the yield is the divisor. Halving the yield doubles the capital needed for the same income — which is why reaching for a higher yield is so tempting, and why the risk that comes with it deserves attention.
Q. Does the payment frequency change the annual total?
Not in this calculation. Quarterly or monthly only changes how the same annual amount is split up. In practice, more frequent payments help if you reinvest, because the money starts working sooner.
Q. Is dividend growth included?
No. The yield you enter is held constant. Companies that raise dividends year after year end up well ahead of this, and companies that cut end up well behind.