Dividend Calculator

A dividend is the portion of a company's earnings returned to shareholders. In the case of ETFs, dividends collected from constituent stocks are distributed to investors. Dividend yield is the ratio of the annual dividend to the current share price, an indicator of cash flow relative to investment.

When receiving dividends from foreign ETFs in Korea, a 15.4% dividend income tax (14% income tax + 1.4% local income tax) is withheld at source. If annual financial income (interest + dividends) exceeds ₩20M, you must file comprehensive income tax, so high-value investors need an investment plan that considers their tax bracket.

DRIP (Dividend Reinvestment Plan) is a strategy of buying additional shares of the same ETF with received dividends. As you reinvest, your holding quantity grows, earning more dividends at the next payment — creating a compound effect. Over the long term, reinvesting dividends makes a significant difference in total returns.

This dividend calculator instantly computes pre-tax/after-tax dividends and monthly income by entering your investment amount, dividend yield, payout frequency, and tax rate. Turn on the dividend reinvestment simulation to see how your wealth grows over time when you reinvest after-tax dividends each year. Watch the gap between principal (light green) and total assets including reinvestment (dark green) widen over time on the chart.

When choosing dividend ETFs, look beyond just yield — consider dividend growth rate and total return together. For example, SCHD has a ~3.5% yield (lower than JEPI at ~7-8%), but focuses on dividend growers that steadily increase payouts, potentially delivering higher long-term returns. JEPI, on the other hand, uses option premiums for high monthly income, suiting investors who need stable cash flow.

Tax management is also crucial. When Korean residents receive US ETF dividends, 15% is withheld at source in the US, with no additional Korean tax (per tax treaty). However, if annual financial income exceeds KRW 20 million, comprehensive income tax filing is required. High-dividend investors should consider ISA or pension savings accounts for tax optimization. Adjust the tax rate in this calculator to compare different scenarios and find your optimal strategy.