Tools · Dividend Calculator
See the power of dividend reinvestment (DRIP). Calculate how your portfolio grows when you reinvest dividends and benefit from compounding over time.
Dividend Growth Calculator
See the power of dividend reinvestment (DRIP)
Initial Investment
$
Dividend Yield
%
Dividend Growth
%/yr
Time Horizon
Portfolio After 10 Years
$17K
+$7K (71% gain)
Annual Dividend Income
$1K/yr
$112/month
Yield on Cost
13.5%
vs 4% starting yield
DRIP Benefit
+$7K
Extra from reinvesting
Portfolio Growth Over Time
Key Insights
• Your $10K could grow to $17K in 10 years
• Reinvesting dividends adds $7K extra to your portfolio
• Your yield on cost grows from 4% to 13.47%
• Total dividends received: $8K
Disclaimer: This calculator is for educational purposes only. Actual returns will vary. Past dividend performance does not guarantee future payments. Stock prices fluctuate, and you may lose money. Always do your own research before investing.
Learn · DRIP basics
What is DRIP?
DRIP (Dividend Reinvestment Plan) automatically uses your dividend payments to purchase additional shares. Instead of receiving cash, your dividends buy more shares, which then earn their own dividends - creating a compounding snowball effect.
The power of compounding
With dividend growth stocks you get two compounding effects: share accumulation through DRIP plus annual dividend increases from the company. Over 20-30 years this dual compounding can turn a modest investment into significant wealth.
Yield on cost
Yield on Cost measures dividend income relative to your original investment. A stock with 3% yield today could have a 10%+ yield on cost after 20 years of dividend growth - meaning you'd earn 10% annually on your original investment.
Scenarios · Worked examples
Dividend aristocrat example (Johnson & Johnson style)
Starting with $10,000 in a stock with 2.5% yield and 6% annual dividend growth: after 25 years with DRIP, your portfolio could be worth ~$48,000 with annual dividend income of ~$2,800 - a 28% yield on your original investment.
High-yield example (REITs / BDCs)
Starting with $10,000 in a 7% yield investment with 3% dividend growth: after 20 years with DRIP, your portfolio could be worth ~$38,000 with annual income of ~$3,400. Higher starting yield means more shares accumulate faster.
Next step
Find dividend stocks to invest in
Explore our curated list of dividend stocks including Dividend Aristocrats with 25+ years of consecutive increases, high-yield income plays, and emerging dividend contenders.
Disclaimer: This calculator is for educational and informational purposes only. It assumes constant dividend yields and growth rates, which rarely occur in practice. Actual investment returns will vary based on market conditions, stock price fluctuations, and changes in dividend policies. Companies may reduce or eliminate dividends at any time. This is not investment advice. Always conduct thorough research and consider consulting a financial advisor before making investment decisions.