Dividend Reinvestment (DRIP) Growth Calculator
Calculate how dividend reinvestment (DRIP) multiplies your portfolio versus collecting dividends as cash. Project 20-year growth with real compounding math.
DRIP Growth Formula
DRIP compounds returns by purchasing additional shares with each dividend payment, which then generate their own future dividends.
Dividend growth rate compounds the yield over time. Quarterly reinvestment (4× per year) is the most common DRIP frequency for US dividend stocks and ETFs.
How to Use the DRIP Calculator
Enter your initial investment
Input the total dollar amount you are investing in a dividend-paying stock or fund.
Set the dividend yield
Enter the current annual dividend yield as a percentage (e.g., 3.5% for many blue-chip stocks).
Enter annual price appreciation
Historical S&P 500 total returns average ~10%, of which ~2% is price appreciation and ~1.5% is dividends. Set this separately from the yield.
Choose dividend frequency
Most US stocks pay quarterly. Some ETFs pay monthly. International funds may pay annually.
Compare DRIP vs no-DRIP
The results show exactly how much more wealth compounding dividends generate versus spending them as income.
Real-World Scenario Example
"Investor puts $10,000 into a stock with 3.5% yield, 5% price appreciation, and 3% dividend growth rate, held for 20 years, reinvesting quarterly."
Inputs
Result
With DRIP: ~$45,300. Without reinvesting dividends: ~$26,533. DRIP advantage: ~$18,767 in additional wealth.
Important Disclaimer
These projections are for educational purposes only and do not constitute financial advice. Dividend yields and price appreciation are not guaranteed.
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