💰 Dividend Cashflow Calculator

Version 3.0 — Reorganized for clarity + expanded glossary & FAQs

🛈 How to Use

📘 Quick Terminology

For full glossary, examples, and FAQs, scroll to the bottom.

📊 Stock/ETF Selection

📋 Tax Settings

Your total taxable income
Leave at 0 to auto-calculate, or enter a specific rate

⚙️ Investment Parameters

Cushion for potential dividend reductions
Percent of dividends to reinvest
Disclaimer: This is educational, not financial or tax advice. Outputs are estimates; consult a professional.

📚 Complete Glossary

Ticker Symbol
A unique identifier for a stock or ETF, used to look up data.
Example: "ULTY" for YieldMax Ultra Option Income ETF. Enter it to auto-fill price and dividend info.
Desired Monthly Cashflow
Your target after-tax monthly income from dividends, after applying buffer.
Example: Enter $1,000 for $12,000 annual target. Tool calculates shares needed.
Number of Shares Owned
How many shares you currently hold if using "shares" mode.
Example: 100 shares of a $50 stock with $2 annual dividend yields $200/year before tax.
Current Share Price
The market price per share today.
Example: $50/share means initial investment for 100 shares is $5,000.
Dividend Per Payout
Amount paid per share per distribution (e.g., per quarter).
Example: $0.50 quarterly = $2 annual per share.
Dividend Payout Frequency
How often dividends are paid per year (e.g., 4 for quarterly).
Example: Weekly (52x/year) means small payments every week, smoothing income.
CAGR Calculation Period
Time frame to estimate growth rates from history.
Example: 5 years uses past data to project annual growth like 5%.
Dividend CAGR
Compound annual growth rate of dividends.
Example: From $1 to $1.21 in 2 years: ((1.21/1)^(1/2) - 1) * 100 = 10%.
Share Price CAGR
Compound annual growth rate of share price.
Example: Price from $100 to $121 in 2 years: 10% CAGR.
State
Your state for tax calculation (some have income tax on dividends).
Example: Oregon taxes dividends as ordinary income; Washington does not.
Filing Status
Tax filing type, affecting brackets.
Example: Married has higher thresholds than Single, potentially lower rate.
Annual Taxable Income
Your total income, used to determine tax bracket for dividends.
Example: $75,000 for Single filer puts qualified dividends at 0-15% federal.
Manual Tax Rate
Override auto-calculated tax rate.
Example: Enter 15% if you know your effective rate, ignoring brackets.
Buffer for Dividend Cuts
Safety margin (%) to overbuy shares against potential reductions.
Example: 15% buffer for $1,000/month calculates for $1,176, so cuts by 15% still hit target.
DRIP Allocation
Percent of after-tax dividends reinvested to buy more shares.
Example: 50% DRIP on $100 dividend buys shares with $50, compounding growth.
Investment Horizon
Number of years for projections.
Example: 10 years shows how $10,000 initial grows with 5% CAGR to ~$16,289.
Assume Constant Dividend (Toggle)
Sets dividend CAGR to 0%, keeping dividends fixed.
Example: Dividends stay $2/share/year, no growth or decline.
Keep Income Flat (Toggle)
Sets DRIP to 0%, no reinvestment.
Example: All dividends paid out, income doesn't grow from compounding.
Track Cash Balance (Toggle)
Shows accumulated cash from payouts minus target spend.
Example: If payouts $15,000/year but target $12,000, cash builds $3,000/year.
Initial Investment
Lump sum to buy shares for target income.
Example: For $12,000/year at 5% yield after tax: ~$240,000.
Year 1 Monthly Cashflow
Buffered after-tax monthly income in first year.
Example: $1,000/month target after 15% buffer.
Year 1 Annual Dividends (After Tax)
Full projected annual dividends after tax, before buffer.
Example: $14,118 for $1,000/month with buffer.
Horizon Monthly Cashflow
Buffered monthly income at end of horizon.
Example: Grows to $1,500/month with positive CAGR and DRIP.
Horizon Annual Dividends (After Tax)
Full annual dividends after tax at horizon.
Example: $18,000 after growth.
End-of-Horizon Portfolio Value
Market value of shares at end.
Example: $300,000 after price appreciation.
End-of-Horizon Total Net Worth
Portfolio + accumulated cash if tracking.
Example: $300,000 portfolio + $50,000 cash = $350,000.

❓ Frequently Asked Questions (FAQs)

What is a ticker symbol?
A unique code for a stock or ETF. Example: Enter "AAPL" for Apple to fetch data automatically.
How does Auto-Fill Data work?
Fetches current price, recent dividend, frequency, and CAGR from Yahoo Finance. Example: For "SCHD", it might fill price $80, dividend $0.66 quarterly.
What if the frequency detection is wrong?
Check "Lock frequency" to keep your manual selection. Detection uses median days between payouts; low confidence means irregular history.
Why might CAGR be negative?
Based on historical decline, e.g., high-yield ETFs like ULTY erode price for income. Example: -55% means price halves yearly on average.
How are taxes calculated?
Uses progressive brackets for federal (qualified dividends 0-20%) and state (ordinary income). Example: Single, $75k income: ~5.33% federal + state rate.
What are qualified vs. ordinary dividends?
Qualified (held >60 days) taxed at lower capital gains rates; ordinary at income rates. Tool assumes qualified for federal.
What is the purpose of the buffer?
Adds extra shares to protect against cuts. Example: 15% buffer buys enough for 15% more income, so cuts don't drop below target.
What are the benefits of DRIP?
Reinvests to buy more shares, compounding growth. Example: 50% DRIP on $100 dividend buys shares with $50, increasing future dividends.
Why does the portfolio value decline?
Negative price CAGR in high-yield options ETFs erodes NAV. Income stays from dividends. Example: ULTY yields high but price drops ~50%/year historically.
What does "Keep income flat" mean?
Sets DRIP to 0%, no reinvestment, so income doesn't grow. Useful for stable projections without compounding.
What does "Assume constant dividend" do?
Sets dividend CAGR to 0%, keeping dividends per share fixed over time.
How does "Track cash balance" work?
Shows accumulated cash from payouts minus target spend. Example: If payouts $15k/year but target $12k, +$3k/year to cash.
How accurate are these projections?
Estimates based on history; assume constant trends. Real markets vary—use for education, not advice.
How to choose a high-yield ETF?
Look at Top ETFs list; balance yield, frequency, and price stability. Example: SCHD for stable ~3.9% quarterly vs. ULTY for high but risky weekly.
What if projections show negative net worth?
Unrealistic long-term; high-yield ETFs may not sustain. Shorten horizon or choose stable assets.
How does changing the horizon affect results?
Longer horizons amplify growth/decline from CAGR. Example: 20 years with 5% CAGR doubles value ~every 14 years.
When to use manual tax rate?
If auto-calc doesn't match your situation, e.g., non-qualified dividends. Example: Enter 22% for ordinary income bracket.
How does filing status impact taxes?
Married has higher brackets, potentially lower rates. Example: $100k income: Single ~15% federal qualified; Married 0%.
How is monthly cashflow calculated?
Annual after-tax dividends × (1 - buffer%) / 12. Adjustable via toggles for stability.
How does reinvestment work in projections?
After-tax dividends × DRIP% buys new shares at current price, growing holdings. Example: $100 reinvested at $50 buys 2 shares.
Why is the cash delta negative?
If payouts < target spend, cash depletes. Example: $10k payouts but $12k target: -$2k/year.
What if share price goes to zero?
Projections assume trends continue; in reality, ETF may liquidate. Choose ETFs with positive CAGR for sustainability.
How to interpret the charts?
Portfolio chart shows market value growth/decline; Dividend chart shows income stability or growth.
Why use buffer for cuts but not increases?
Conservative planning; buffer protects downside. Growth from CAGR/DRIP handles upside.
Can I add my own ETFs to the top list?
Not directly; list is curated. Use Auto-Fill for custom tickers.
What if data fetch fails?
Enter values manually; tool uses Yahoo Finance, which may have downtime.