Portfolio Conversion Planner

Convert Growth Holdings Into Dividend Income

See the income jump from a partial or full conversion, then switch to advanced mode to model the tax drag and spread the transition across multiple years.

Planner Inputs

Conversion setup

100.0%

Converting: 100.0% - $0

Keeping: 0.0% - $0

Live Output

Before / After Income View

Current Annual Income

$0

from existing income holdings

$0/yr

(0.0%)

Total Annual Income

$0

after conversion

Capital Converting

$0

Growth Sleeve Remaining

$0

Total Monthly Income

$0/mo

Result explainer

What the conversion result means

What this means

This setup keeps the existing $0 of annual income and adds $0 from the converted growth sleeve, for $0 total annual income.

Why this result happened

  • Growth sleeve add-on is the active setup.
  • 100.0% of the capital is modeled into a 5.0% dividend-yield assumption, creating $0 of annual income.
  • Existing income is treated as a separate income engine and is not reduced by the conversion.
  • Basic mode shows the income change before capital-gains tax and other transaction costs.

What could change this

  • Dividend yield can move with price changes and payout changes.
  • Tax cost depends on ACB, marginal rate, account type, inclusion-rate policy, and sale timing.
  • Keeping part of the portfolio in growth changes both future income and future capital exposure.

Next number to check

Open Capital Gains Calculator

Isolate the tax cost of the sale before treating the income increase as a net result.

This is a scenario comparison, not a suggestion to convert, sell, or buy any holding.

This calculator is for informational purposes only and is not licensed financial or tax advice. Capital gains calculations are estimates based on the inputs you provide. Consult a qualified tax professional before making a conversion decision.

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Educational context

Converting Growth Holdings to Dividend Income

Many investors eventually shift from growth-focused accumulation to income generation. The key question is not just when to convert, but what the tradeoff looks like.

When should I start converting growth stocks to dividend stocks?

There is no universal trigger. It depends on your timeline, income needs, account type, and tax consequences.

What income increase can I expect from switching to dividends?

That depends on the yield difference between what you own today and what you are converting into.

How are capital gains taxed when I sell growth stocks in Canada?

In a non-registered account, selling can trigger capital gains tax. In registered accounts, the treatment can be different.

What is the difference between growth and income investing?

Growth investing prioritizes capital appreciation. Income investing prioritizes cash flow. Many portfolios blend both over time.

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Freshness and methodology

Last reviewed

April 2026 with 2026 CRA planning inputs.

Methodology

Capital gains tax estimates use the current coded 50% inclusion-rate assumption. Policy-sensitive values should be re-verified before filing.

Updated for 2026 CRA limits · Last verified April 2026

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