Starting point
- Monthly dividend today: $2,700
- Account: Non-registered
- Strategy: 100% reinvest
- Dividend growth assumption: ~4% / year
- No additional contributions
Monthly dividend growth (with reinvestment)
- Year Monthly Dividend
- Start $2,700
1 $2,880
2 $3,180
3 $3,580
4 $4,120
5 $4,800
6 $5,200
7 $5,650
8 $6,000+
- $6,000/month reached in ~7.5–8 years
Reinvest vs not reinvest (after 5 years)
- Strategy Monthly Income
- No reinvest ~$3,290
- Reinvest ~$4,800
- Reinvesting produces ~46% more monthly income after 5 years
Salary equivalence (no other income)
- $6,000/month dividends = $72,000/year
- Estimated tax: ~$5,000
- Net cash: ~$67,000
Equivalent employment salary:
- ~$92,000–95,000
Key takeaways
- Reinvestment dramatically accelerates income
- Growth speeds up after Year 3
- Dividend income in non-registered accounts is very tax-efficient
- $6k/month dividends feels like a low-stress ~$95k salary