Model dividend income and the effect of reinvesting (DRIP) over time with simple assumptions. Free, no account required, and nothing here is financial advice.
Explore the hypothetical effect of dividend reinvestment and compounding over time using simplified assumptions.
$350.00
$1,700.32
$17,266.00
$50,280.97
198.98
17.00%
| Year | Annual Dividend | Total Received | Shares | Portfolio Value | Growth |
|---|---|---|---|---|---|
| 1 | $350.00 | $350.00 | 103.50 | $10,350.00 | |
| 2 | $380.36 | $730.36 | 107.12 | $11,247.86 | |
| 3 | $413.36 | $1,143.72 | 110.87 | $12,223.61 | |
| 4 | $449.22 | $1,592.94 | 114.75 | $13,284.01 | |
| 5 | $488.19 | $2,081.13 | 118.77 | $14,436.40 | |
| 6 | $530.54 | $2,611.66 | 122.93 | $15,688.76 | |
| 7 | $576.56 | $3,188.23 | 127.23 | $17,049.76 | |
| 8 | $626.58 | $3,814.81 | 131.68 | $18,528.83 | |
| 9 | $680.93 | $4,495.74 | 136.29 | $20,136.20 | |
| 10 | $740.01 | $5,235.74 | 141.06 | $21,883.02 | |
| 11 | $804.20 | $6,039.95 | 146.00 | $23,781.37 | |
| 12 | $873.97 | $6,913.91 | 151.11 | $25,844.40 | |
| 13 | $949.78 | $7,863.69 | 156.40 | $28,086.40 | |
| 14 | $1,032.18 | $8,895.87 | 161.87 | $30,522.90 | |
| 15 | $1,121.72 | $10,017.58 | 167.53 | $33,170.76 | |
| 16 | $1,219.03 | $11,236.61 | 173.40 | $36,048.32 | |
| 17 | $1,324.78 | $12,561.39 | 179.47 | $39,175.52 | |
| 18 | $1,439.70 | $14,001.09 | 185.75 | $42,573.99 | |
| 19 | $1,564.59 | $15,565.68 | 192.25 | $46,267.29 | |
| 20 | $1,700.32 | $17,266.00 | 198.98 | $50,280.97 |
Toggle DRIP on and off and watch the year-by-year table. With reinvestment, each payment quietly buys more shares, so the next year’s dividend is calculated on a bigger base. Without it, your income still grows if the dividend rises, but the share count stays flat. Seeing both side by side is the fastest way to understand what “compounding” actually means for dividends.
The model assumes a constant yield and a steady growth rate with no taxes or fees. Real dividends are not guaranteed and rarely move in a straight line, so this is for learning, not predicting.
You enter an investment amount, a dividend yield, an assumed annual dividend growth rate, and a time horizon. The tool projects the annual dividend income each year. If you turn on reinvestment (DRIP), it also buys hypothetical new shares with each payment, so future dividends grow on a larger share count.
DRIP stands for Dividend Reinvestment Plan. Instead of taking dividends as cash, each payment automatically buys more shares. Over long periods this can compound, because you earn dividends on the shares your earlier dividends bought.
Yield on cost compares the current annual dividend to your original investment, not the current price. If a company keeps raising its dividend, the income measured against what you originally paid can grow over time. The tool shows this as an illustration under steady-growth assumptions.
No. Companies can cut or eliminate dividends at any time, and this tool assumes a constant yield and steady growth that real companies do not promise. Treat the numbers as a simplified illustration, not a projection of real income.
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