
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.
See what your capital can earn without your hours, with the effort and the risk labelled honestly.
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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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