Dividend Reinvestment (DRIP) Calculator
Model automatic dividend reinvestment: each year's income buys more shares, and next year's dividend is earned on the larger share count.
| Year | Shares | Dividend/share | Income | Cumulative income | Yield on cost | Value |
|---|---|---|---|---|---|---|
| 1 | 103.85 | $4.00 | $400 | $400 | 3.85% | $10,800 |
| 2 | 107.88 | $4.20 | $436 | $836 | 4.02% | $11,668 |
| 3 | 112.11 | $4.41 | $476 | $1,312 | 4.21% | $12,611 |
| 4 | 116.55 | $4.63 | $519 | $1,831 | 4.39% | $13,634 |
| 5 | 121.20 | $4.86 | $567 | $2,398 | 4.57% | $14,746 |
| 6 | 126.09 | $5.11 | $619 | $3,016 | 4.75% | $15,955 |
| 7 | 131.23 | $5.36 | $676 | $3,692 | 4.94% | $17,269 |
| 8 | 136.63 | $5.63 | $739 | $4,431 | 5.12% | $18,698 |
| 9 | 142.30 | $5.91 | $807 | $5,238 | 5.30% | $20,254 |
| 10 | 148.26 | $6.21 | $883 | $6,121 | 5.48% | $21,947 |
| 11 | 154.54 | $6.52 | $966 | $7,087 | 5.65% | $23,791 |
| 12 | 161.14 | $6.84 | $1,057 | $8,145 | 5.83% | $25,800 |
| 13 | 168.10 | $7.18 | $1,158 | $9,302 | 6.00% | $27,989 |
| 14 | 175.42 | $7.54 | $1,268 | $10,570 | 6.16% | $30,377 |
| 15 | 183.13 | $7.92 | $1,389 | $11,959 | 6.33% | $32,981 |
| 16 | 191.26 | $8.32 | $1,523 | $13,482 | 6.49% | $35,823 |
| 17 | 199.84 | $8.73 | $1,670 | $15,152 | 6.64% | $38,926 |
| 18 | 208.88 | $9.17 | $1,832 | $16,984 | 6.79% | $42,315 |
| 19 | 218.42 | $9.63 | $2,011 | $18,995 | 6.93% | $46,018 |
| 20 | 228.50 | $10.11 | $2,208 | $21,203 | 7.08% | $50,067 |
Projection, not a prediction. Assumes annual compounding, contributions at the start of each year, DRIP purchases at year-end price, constant growth rates, and no taxes, fees, or dividend cuts. Full model on the methodology page.
Frequently Asked Questions
What is a DRIP?
A dividend reinvestment plan automatically uses cash dividends to buy more shares (often fractional) instead of paying the cash out. Each reinvestment increases the share count that earns the next dividend, which is the compounding engine this calculator models.
At what price are dividends reinvested here?
At the projected year-end share price for each year. Real DRIPs reinvest on each payment date at the then-current price; annual modeling is a simplification and is documented on the methodology page.
Does reinvesting always beat taking the cash?
Not necessarily. Reinvesting concentrates more money in the same security and defers nothing for income needs. It compounds share count, but the outcome still depends on the dividend being sustained and the price you reinvest at.
The other four calculators, with worked examples computed from real payout records, are on the calculator hub. Every covered ticker also has a version with its own trailing payout pre-loaded, linked from the dividend tables. The model behind these results is written out on the methodology page.