
Dividend Income: The Arithmetic
A 6% yield can compound to less than a 1.5% yield at the same total return. Work through cash income, annual tax and the final sale.
4 plain-English reads on budgeting, saving, investing, debt, credit and taxes. Newest first unless you say otherwise.

A 6% yield can compound to less than a 1.5% yield at the same total return. Work through cash income, annual tax and the final sale.

A REIT must distribute at least 90% of taxable income, not 90% of rent. Compare listed funds, locked-up products and taxable-account drag.

$500 monthly needs $150,000 at a 4% withdrawal rate or $187,500 at a 3.2% dividend yield. Neither figure includes tax or guarantees the income.

At an assumed 4% yield, $500 monthly takes $150,000 before tax. Compare nine income sources by capital, work and the risk behind the payment.
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