The Dividend Ledger

Where should your next dollar go —
dividends or cash?

A side-by-side, after-tax projection of a dividend ETF like SCHD against a high-yield savings account, adjusted for account type and tax bracket.

3.5%Typical SCHD yield
0–20%Qualified dividend tax
~4.0%Current HYSA APY

Your Numbers

Projected Outcome

Dividend ETF
$0
after-tax ending balance
HYSA
$0
after-tax ending balance
Dividend ETF HYSA

Simplified model for education, not tax advice. Assumes dividend yield and HYSA APY stay constant, dividends reinvested automatically, and — for Traditional IRA — ordinary-income tax applied at withdrawal in the final year rather than modeling RMDs. Qualified dividend rate approximated by bracket (0% / 15% / 20%); HYSA interest is never qualified and is taxed as ordinary income every year in a taxable account.

Ad slot — 728×90 leaderboard (insert AdSense unit here)
Open an account

Start a Roth IRA

Dividend growth compounds tax-free longest inside a Roth. Compare brokers with no minimum and commission-free ETFs.

Compare brokers →
Park your cash

High-yield savings, 4%+ APY

For the portion of your plan that needs to stay liquid, see current top HYSA rates.

See current rates →

Why this isn't a fair fight — and why that's the point

A dividend ETF and a savings account solve different problems. One is a claim on growing businesses that happens to pay you along the way; the other is a guarantee, dollar for dollar, with no principal risk. This calculator isn't here to declare a winner — it's here to make the after-tax math visible, because the sticker-rate comparison (yield vs. APY) is almost never the real comparison once account type and tax treatment enter the picture.

The account-type lever most people underweight

The same dividend stream is worth more inside a Roth IRA than in a taxable brokerage account, and worth something different again in a Traditional IRA — not because the underlying fund changed, but because of when and how the IRS takes its share. Moving the exact same holding between account types can change its effective long-run return more than most yield-chasing decisions do.

Adjust "Account type" above and watch the ending balance shift with everything else held constant.