For Growth-to-Income Investors
See the income jump, model the tax cost, fill the coverage gaps.
Most Canadian investors hit a point where growth stops being the goal. The portfolio is there, but it is not producing income yet. Making the switch is not complicated, but it has a tax cost that most investors underestimate. This page is for investors who are actively considering a shift from growth ETFs or individual growth stocks to a dividend income strategy. Use the Portfolio Conversion Tool to model the income jump and the capital gains cost of the conversion. Use the Dividend Calculator to compare the after-tax yield of what you are moving into versus what you are holding now. Use the Dividend Income Calendar to map coverage across all 12 months before you commit. Do the math first, then make the move.
Start Here
Lead with the right calculator
Primary calculator
Portfolio Conversion Tool
Model the income jump and capital gains cost of converting growth holdings to dividend income.
Key Concepts
The framework language behind the tools
- 1
Converting a growth ETF or stock to a dividend holding typically triggers a capital gains event. Model this tax cost before converting, not after the disposition.
- 2
The income jump on conversion depends on the yield differential between what you are selling and what you are buying, not just the yield of the new holding.
- 3
DRIP from day one on new income holdings begins compounding immediately. Every cycle of delay costs shares, not just income.
- 4
Portfolio conversion is not all-or-nothing. A partial conversion lets you test the income stream before committing the full position.
- 5
The break-even point between growth and income depends on your timeline, tax situation, and income need. Run the numbers before assuming one approach is better.
Read Next
Related reading for this investor type
Should You Convert Growth Holdings to Income?
The decision framework for Canadian investors at the growth-to-income inflection point.
The Tax Cost of Converting a Growth Portfolio to Dividend Income in Canada
How capital gains on conversion reduce the net income gain, modelled in CAD.
$50K in ETFs, How to Transition to Dividend Income in Canada
A worked example of a growth-to-income conversion at a realistic portfolio size.
Growth vs Dividend Investing in Canada, 20 Years of Wealth Building Compared
Long-run comparison of both strategies with Canadian tax treatment applied.
Suggested Workflow
A practical order for working through the tools
See the income jump, calculate the tax, fill the gaps.
- 1
Run the Portfolio Conversion Tool to model the income jump and capital gains cost of converting your largest growth position.
- 2
Use the Dividend Calculator to compare the after-tax yield of the new income holding versus what you are currently holding.
- 3
Map the new income stream in the Dividend Income Calendar to identify any months with thin or missing coverage.
- 4
Return to the Portfolio Conversion Tool after any tax rate changes to re-model the conversion cost before acting.