Dividend Income Planner
Project your future passive income from dividends. Model reinvestment compounding, choose your dividend frequency, track milestone targets, and see exactly when your portfolio pays enough to live on.
Your Investment Details
Fill in your numbers to see projections
How often dividends are paid out. More frequent payouts compound faster with DRIP enabled.
Future Portfolio Summary
₹1,29,71,464
after 15 years
₹41,00,000
contributions only
₹4,83,326
at 4% yield
₹40,277
Yield on Cost
11.79%
Your portfolio earns 11.79% per year on every rupee you invested — not on today's market value. As dividends grow and compound, YoC keeps climbing even if the starting yield was low.
DRIP Compounding Advantage
+51.3%
Extra ₹43,97,239 by reinvesting
Wealth Breakdown
Passive Income Milestones
Target
₹10,000/mo
Reached in Year 7
100% of target reached
Target
₹25,000/mo
Reached in Year 12
100% of target reached
Target
₹50,000/mo
Not reached in 15 years
81% of target reached
Target
₹1,00,000/mo
Not reached in 15 years
40% of target reached
Dividend Reinvestment Impact
DRIP vs No DRIP — after 15 years
Without Reinvestment
₹85,74,225
Annual income: ₹3,25,673
Monthly: ₹27,139
With Reinvestment (DRIP)
₹1,29,71,464
Annual income: ₹4,83,326
Monthly: ₹40,277
Reinvesting dividends creates a ₹43,97,239 larger portfolio — a 51.3% compounding advantage.
Year-by-Year Income Projection
| Year | Portfolio Value | Monthly Income |
|---|---|---|
| 1 | ₹8,16,980 | ₹2,148 |
| 2 | ₹11,74,114 | ₹3,268 |
| 3 | ₹15,76,489 | ₹4,530 |
| 4 | ₹20,29,837 | ₹5,953 |
| 5 | ₹25,40,614 | ₹7,555 |
| 6 | ₹31,16,096 | ₹9,360 |
| 7 | ₹37,64,480 | ₹11,394 |
| 8 | ₹44,94,999 | ₹13,686 |
| 9 | ₹53,18,060 | ₹16,268 |
| 10 | ₹62,45,386 | ₹19,177 |
| 11 | ₹72,90,184 | ₹22,455 |
| 12 | ₹84,67,335 | ₹26,147 |
| 13 | ₹97,93,606 | ₹30,308 |
| 14 | ₹1,12,87,888 | ₹34,996 |
| 15 | ₹1,29,71,464 | ₹40,277 |
What is Yield on Cost?
Yield on Cost (YoC) = Annual Dividend ÷ Your Original Investment × 100. A stock bought at ₹500 with a 2% yield that grows dividends at 12%/year will yield 19% on your original cost after 20 years — the true measure of long-term dividend success.
Passive Income Ideas
The most reliable passive income ideas: dividend stocks, mutual fund Growth option (DRIP equivalent), REITs, index ETFs, and debt instruments. Dividend investing stands out because income grows over time — unlike fixed interest — and DRIP accelerates it without any action from you.
What is DRIP?
Dividend Reinvestment Plan (DRIP) means dividends are automatically used to buy more shares. This accelerates compounding — each dividend generates future dividends. Over 20+ years, DRIP often doubles the final portfolio vs taking dividends as cash.
Frequently Asked Questions
Yield on Cost (YoC) = Annual Dividend ÷ Your Original Investment. If you invested ₹5,00,000 and now earn ₹40,000/year in dividends, your YoC is 8% — regardless of the stock's current market price. YoC grows over time as dividends increase and as DRIP compounding builds your share base, making it the true long-term measure of dividend success.
Top dividend-based passive income ideas: (1) dividend-growth stocks with 10+ year payout history, (2) mutual fund Growth option as a tax-efficient DRIP equivalent, (3) dividend ETFs for diversified income, (4) REITs for quarterly property-linked distributions, and (5) combining monthly SIP contributions with DRIP — this dual compounding approach builds the income-generating corpus significantly faster.
A dividend yield of 2–5% is generally considered healthy for equity investments. Yields above 6–7% often signal price distress rather than strength — always verify the payout is sustainable from earnings.
Dividend investing carries market risk like all equity investments. However, dividend-paying companies tend to be mature, cash-generative businesses. The income stream adds stability. Diversification across sectors reduces risk significantly.
Taxation varies by country. In India, dividends are added to income and taxed at your slab rate. In the US, qualified dividends are taxed at 0–20% (lower than ordinary income). Always consult a tax advisor for your specific situation.
If you don't need the income for living expenses, reinvesting is almost always better. It accelerates compounding — each dividend payment buys more shares, which generate more dividends. Even a 10-year DRIP advantage compounds dramatically over 20+ years.
Yes — this is the core concept behind dividend-based financial independence. A portfolio of 25× your annual expenses (4% withdrawal rate) can sustainably fund your lifestyle. Some dividend investors target a yield of 3–5% on a large enough portfolio.
Key risks: (1) Dividend cuts — companies can reduce payouts during economic stress. (2) Concentration risk — high-yield portfolios may over-weight mature, low-growth sectors. (3) Inflation risk — fixed dividends lose purchasing power. Diversifying and focusing on dividend growth (not just current yield) mitigates these risks.