Dividend planning toolkit
Dividend Yield, Growth, and Yield on Cost Calculator
Use this dividend yield calculator to measure how dividend growth could improve income on original capital if payouts keep rising.
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Yield on Cost Projection
Update the assumptions below to model a realistic dividend-income path.
What this calculator helps you estimate
Start with today's dividend yield, then test how annual dividend growth changes future yield on cost.
Yield on cost is most useful when paired with total return, valuation discipline, and payout sustainability.
This tool highlights the tradeoff between starting yield and growth rate across a multi-year holding period.
How to interpret the result
Treat the output as a planning range, not a guarantee. Dividend policy, taxes, inflation, and market valuation can all change faster than a spreadsheet implies.
| Planning question | Next step |
|---|---|
| How much income does this portfolio produce now? | Use the dividend income calculator and compare monthly dividends with monthly expenses. |
| What happens if dividends keep growing? | Use the yield on cost or reinvestment calculator to test growth and compounding assumptions. |
| How much capital is still missing? | Use the retirement income gap calculator to turn a shortfall into a portfolio target. |
Frequently asked questions
What is yield on cost?
Yield on cost is the current annual dividend income from an investment divided by the original purchase price.
How is this different from a basic dividend yield calculator?
A basic dividend yield calculator usually measures income today. This tool starts with current yield, then projects how dividend growth could change yield on your original cost over time.
Is a high yield on cost enough by itself?
No. A company can show attractive historical growth while still becoming overvalued or facing business deterioration.
When is this most useful?
It is useful when comparing lower-yield, higher-growth dividend names against higher-yield, slower-growth alternatives.