Kesoria

Growth vs. Dividend Tax Drag

Measure the hidden tax drag of dividend investing in a taxable account.

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Tax Rates

Growth Stock

Dividend Stock

Growth — Net (Taxable)
US$690,057
Tax-advantaged: US$806,231
Dividend — Net (Taxable)
US$465,983
Tax-advantaged: US$560,441

Taxable Account — After-Tax Net Value

  • Dividend (Net Taxable)
  • Growth (Net Taxable)
Yr 0Yr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10Yr 11Yr 12Yr 13Yr 14Yr 15Yr 16Yr 17Yr 18Yr 20US$0US$200kUS$400kUS$600kUS$800k

"Net taxable" assumes a standard brokerage account: dividends taxed annually, capital-gains tax paid on liquidation in year 20. Tax rates and treatment vary by country.