Monthly Dividend Calculator
Find out how much you need to invest to reach a target monthly dividend income — and see what your current portfolio pays each month.
How the monthly dividend calculator works
Work backwards from the income you want. The calculator annualizes your target — monthly income × 12 — and divides by the yield to find the capital required: capital = (monthly × 12) ÷ yield. It then compares that target to what you have already invested and shows the gap still to fund.
The second card flips the question: it takes the amount you have invested and shows the monthly, quarterly, and annual income it generates at the same yield. A monthly schedule does not increase the total — it splits the same annual yield into twelve payments instead of four.
Monthly payers cluster in REITs, BDCs, and covered-call ETFs, which tend to carry higher — and less qualified — yields. Browse the best monthly dividend ETFs guide, then model a specific fund on its own dividend calculator page.
Frequently asked questions
- How much do I need to invest for $1,000 a month in dividends?
- Divide your target annual income by the yield. $1,000 a month is $12,000 a year; at a 5% yield you would need $240,000 invested, at 8% about $150,000, and at 4% you would need $300,000. The calculator does this instantly for any target and yield.
- Which investments pay monthly dividends?
- Monthly payers are concentrated in a few corners of the market: many REITs (such as Realty Income), business development companies (BDCs), and covered-call income ETFs distribute monthly. A handful of bond and high-yield ETFs do too. Most ordinary stocks and broad index funds pay quarterly.
- Does a monthly dividend pay more than a quarterly one?
- No. Payment frequency does not change the total — a 6% yield pays 6% a year whether it arrives in 12 monthly installments or 4 quarterly ones. Monthly dividends simply smooth the cash flow into a paycheck-like rhythm and let you reinvest a little more often.
- Are high monthly yields safe?
- Treat double-digit monthly yields with caution. Funds advertising 10%+ monthly income are usually covered-call or leveraged products that can return capital or see their share price erode, so the high yield can come at the cost of your principal. Always look at total return, not just the distribution.
- Is the income taxed?
- Yes. Monthly distributions from REITs, BDCs, and covered-call funds are frequently non-qualified, meaning they are taxed at your ordinary income rate rather than the lower qualified-dividend rates. The dividend tax calculator can estimate the difference.