Question 1

Is dividend investing good for beginners?

Accepted Answer

Yes. Dividend stocks tend to be from stable, established companies. The regular income helps beginners stay invested and understand compounding early.

Question 2

What's a good dividend yield to target?

Accepted Answer

Generally 3–6% is considered healthy. Yields above 8% may be unsustainable — always verify the company's payout ratio and earnings.

Question 3

How is dividend income taxed in India?

Accepted Answer

In India, dividends are generally added to your total income and taxed at your applicable income tax slab rate. TDS of 10% may apply if dividend income exceeds ₹5,000 per year from a single company. Tax laws are subject to change; please consult a qualified tax advisor for your specific situation.

Question 4

Does this calculator account for taxes or inflation?

Accepted Answer

No — this educational tool calculates pre-tax, nominal returns based on user input. For actual financial planning, you should account for applicable taxes, inflation, and other costs with a certified professional.

Question 5

What is Yield on Cost?

Accepted Answer

Yield on Cost (YoC) is your dividend income in the final year divided by your original investment. It shows how much your initial capital is effectively earning after dividend growth and reinvestment.

Monthly Dividend Calculator