Dividend Reinvestment Calculator

See how reinvesting dividends compounds your portfolio growth over time. Includes dividend growth rate and price appreciation.

Dividend reinvestment (often called DRIP, for Dividend Reinvestment Plan) is the practice of using cash dividends to automatically buy more shares instead of taking the payout in cash. This calculator simulates that year by year: starting from an assumed $100 share price, it tracks how many shares you own, applies the Dividend Yield to compute each year's dividend payment, and -- when Reinvest Dividends is toggled on -- uses that payment to buy additional shares at the current price before the price appreciates for the year. The Dividend Growth Rate compounds the dividend PAID PER SHARE upward each year, modeling a company that raises its payout over time, which is common among established dividend-paying stocks -- the current Dividend Yield you enter is then a snapshot at today's price, not a rate that keeps compounding on its own; the yield the calculator reports later on rises or falls each year depending on whether the growing dividend outpaces the appreciating share price. Portfolio Value is the final share count multiplied by the final share price; Total Dividends Earned is the running sum of every dividend payment received, whether reinvested or taken as cash; and Yield on Cost divides the current annual dividend income by your original investment, showing the effective yield you're now earning relative to what you originally paid rather than the stock's current price. Reinvestment compounds in two directions at once: more shares means more future dividend income, and a growing per-share dividend on top of a growing share count accelerates the snowball further. This model assumes a constant dividend growth rate and price appreciation rate held steady for the entire period, which real markets never actually deliver -- it illustrates the mechanics of compounding, not a forecast of any specific stock's future performance.