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Monthly Dividend Income Calculator

What your portfolio pays per month, this year and every year after

Portfolio value (today's $)
$500,502
≈ $927,902 nominal
Monthly income (today's $)
$2,117
run rate · ≈ $3,925 nominal
Yield on cost
7.3%
vs 4.5% starting yield
Total invested
$250,000
+ $395,185 after-tax dividends
2050 is your crossover year: dividends cover your $2,000/mo goal (today's dollars) in year 25 of your plan.
$100/mo · 2026$250/mo · 2029$500/mo · 2034$1k/mo · 2041

Monthly dividend income milestones (today's dollars)

Portfolio growth
What your portfolio is made of over time
ContributionsReinvested dividendsMarket growth

Projections assume smooth, constant rates. Real markets are volatile and dividend cuts happen. Nothing here is investment advice. Read the full methodology.

A monthly figure from a quarterly schedule

Almost every US dividend stock and ETF pays quarterly, so the monthly number this calculator reports is an average rather than a schedule. A portfolio paying $6,000 a year shows here as $500 a month, but it will really arrive as three lumps. That distinction matters if you are budgeting against it: the average tells you whether the portfolio is big enough, and the payment calendar tells you whether you need a cash buffer to smooth the gaps.

You can flatten the calendar without changing the total. Holding funds with staggered payment months (one paying January, April, July, October, and another paying February, May, August, November) produces something close to a monthly paycheck out of quarterly payers. It is a scheduling trick, not extra income, and it is not worth accepting a worse fund to achieve.

Funds that pay monthly

A smaller group pays every month by design. Realty Income built a brand on it. Some business development companies, a number of Canadian issuers, and most covered-call ETFs pay monthly too. The convenience is real and so is the tradeoff: REIT and covered-call distributions are usually taxed as ordinary income rather than at qualified-dividend rates, and covered-call payouts in particular tend not to grow, because the strategy caps the upside that would fund future increases.

That is worth modelling rather than assuming. Set the yield to 8% and the dividend growth rate to zero, then compare it against 3.5% yield growing at 7%. The high-yield version wins for roughly a decade and then loses, and it loses by more every year after. Which one is right depends entirely on whether you need the income now or later.

The yield you need for the income you want

Working backwards from a monthly target is simple arithmetic: multiply by twelve, then divide by the yield. $500 a month is $6,000 a year, which needs $150,000 at 4% or $120,000 at 5%. $2,000 a month needs $600,000 at 4%. Add tax and the requirement rises. At a 15% rate, that $2,000 target needs closer to $706,000 in a taxable account, which is the single strongest argument for holding high-yield positions inside an IRA.

None of that assumes growth. Once you add contributions and reinvestment, the required starting balance falls fast, and the calculator above is the quickest way to see by how much.

Common questions

Which stocks pay dividends monthly?

Realty Income is the best known, along with other REITs, several business development companies, many Canadian issuers, and most covered-call ETFs. Monthly payment is a scheduling choice and says nothing about quality. Judge the holding on payout safety and growth first.

How much do I need invested for $500 a month in dividends?

About $150,000 at a 4% yield or $120,000 at 5%, before tax. In a taxable account at a 15% dividend tax rate, closer to $176,000 at 4%. Set the income goal above to $500 to see how contributions and dividend growth shorten the timeline.

Is monthly dividend income better than quarterly?

Only for cash-flow convenience. The same annual payout arriving twelve times instead of four is not more money, and reinvesting monthly compounds only marginally faster. If a monthly payer offers a materially higher yield, that yield is compensating you for something: usually leverage, a payout that will not grow, or a less favourable tax treatment.