Dividend Income Coverage
Estimates how many years until distributions cover your target monthly income, given principal, monthly contributions, and an assumed portfolio yield and distribution growth. DRIP compounding; no taxes, no FX.
Years to coverage
15
Final monthly income
$3,425
Final balance
$493,921
Assumptions and caveats
- Distributions are reinvested annually at constant yield-on-cost.
- Distribution per unit grows at the input rate; flat = 0.
- Monthly contributions are added at start of year and immediately participate in yield. A simplification, but doesn't materially change a 10+ year projection.
- Excluded: price changes, withholding tax, currency drift. This is a coverage math model, not an investment recommendation.