Optimal Dividend Yield

And a free tool to help you figure out the optimal dividend yield for You!

New and seasoned dividend investors alike often ask the same question: What’s the ideal dividend yield to target in a portfolio?

There’s an old adage that chasing high yields can lead to below-average performance. On the other hand, if your target dividend yield is too low, you may fall short of your desired dividend income by the time you retire.

Optimal Dividend Yield Calculator

I recently built a custom Optimal Dividend Yield Calculator in Google Sheets to help you figure out the minimum target yield you should aim for in order to reach your desired dividend income by retirement.

You can grab a copy of this spreadsheet using the link below.

https://docs.google.com/spreadsheets/d/1BFlN_Rwq7_2r8u8_kzDQuHXdDqrs-pGGqQ7xtfdl_SM/copy

And you can watch the video below to see how this tool works.

This is a simple tool built on a steady exponential growth model. While it does a decent job modeling long-term outcomes, real-world investing will always have its ups and downs. Your journey won’t be perfectly linear—and that’s okay.

The main goal of this calculator is to help you assess whether your dividend investing targets are realistic.

Can you actually reach your desired income with your current balance and contribution rate?

If not, it can help you adjust your expectations and determine a more suitable dividend yield to aim for.

I hope you find this spreadsheet helpful on your investing journey! Let me know what you think or if you have any questions.