How this calculator works
Year one income is simply portfolio × yield. After that the dividend grows by the growth rate each year, which is what dividend-growth investing is really about — the yield on your original cost keeps climbing even if the share price does nothing.
The model assumes the portfolio value and yield stay flat and that dividends are spent, not reinvested. Reinvesting would compound the result considerably. Note that dividends are taxed in most jurisdictions — see Dividend stocks: how to build a passive income.