← Back to Home

📈 DRIP Calculator

Dividend Reinvestment Plan - See the Power of Compound Growth

Starting amount to invest
Price per share today
Current annual dividend
Expected yearly dividend increase
Expected yearly price appreciation
Final Portfolio Value
-
With DRIP
Total Shares Owned
-
From reinvestment
Total Dividends Received
-
Cumulative income
DRIP Advantage
-
vs. no reinvestment

Year-by-Year Breakdown

Year Shares Stock Price Annual Dividend Portfolio Value

💡 What is DRIP?

Dividend Reinvestment Plans (DRIPs) automatically use dividend payments to purchase more shares of the same stock. This creates compound growth - your dividends buy more shares, which generate more dividends, which buy even more shares.

The power of DRIP becomes dramatic over long time periods. A 4% yielding stock with 5% annual dividend growth can turn $10,000 into over $40,000 in 20 years through reinvestment alone.

📊 Key Insights

• Compound Growth: DRIP creates exponential growth by continuously buying more shares

• Dollar-Cost Averaging: Automatic reinvestment means you buy shares at all price levels

• No Transaction Fees: Many brokers offer commission-free DRIP programs

• Tax Considerations: Dividends are taxable even when reinvested (in taxable accounts)

⚠️ Assumptions & Limitations

• This calculator assumes constant growth rates, which rarely occurs in reality

• Actual returns will vary based on market conditions and company performance

• Dividends can be cut or eliminated at any time

• Does not account for taxes or inflation

• For educational purposes only - not investment advice