Dividend reinvestment (DRIP)

Project the snowball effect of reinvesting every dividend into more shares.

Starting shares

Share price ($)

Starting yield: 3.5%Price growth: 5%/yrDividend growth: 6%/yrYears: 20

Value in 20 years

$27,825

From $5,000 · Final shares: 210

DRIP boost vs price-only: +$14,558 (109.7% over no-reinvest).

Formula

Each quarter: shares ← shares + (shares × dps/4) / price_q; price grows at g_p, dividend per share at g_d. Yearly value is shares × price. The snowball comes from share-count compounding — each new share also earns the dividend in the next period.

Illustrative only. Calculator outputs assume constant inputs and ignore taxes, fees, inflation, and market volatility unless stated. For research and educational purposes only — not financial advice.