Calculate the long-term growth of your dividend investments with the DRIP Calculator. Enter your initial investment, share price, annual dividend yield, dividend growth rate, and share price appreciation to see your projected ending balance, total dividends earned, and a year-by-year breakdown of shares owned and portfolio value.
Ending Portfolio Balance
--
Total Dividends Earned
--
Total Amount Invested
--
Total Shares Owned
Final Year Annual Dividend
--
DRIP stands for Dividend Reinvestment Plan. Instead of receiving dividend payments as cash, you automatically use those dividends to purchase additional shares of the stock. Over time, this compounds your holdings — more shares earn more dividends, which buy even more shares, creating the 'dividend snowball' effect.
DRIPs allow you to grow your position without additional out-of-pocket spending. They take advantage of dollar-cost averaging, compound growth, and can significantly increase your total return versus taking dividends as cash. Many DRIPs also offer shares at a slight discount to market price.
DRIP investing concentrates your reinvestment in a single stock, increasing company-specific risk. Dividends are not guaranteed and can be cut or suspended. Share prices can decline, reducing portfolio value even as you accumulate more shares. Tax on reinvested dividends may also be owed in the year they are received, even if you didn't take cash.
Dividend yield is the annual dividend payment expressed as a percentage of the current share price. For example, if a stock pays $2.00 per share annually and trades at $50, its dividend yield is 4%. Yield on cost is calculated using your original purchase price, which can be much higher over time as dividends grow.
High-yield stocks provide more income upfront but may have slower price and dividend growth. High-growth dividend stocks offer lower initial yields but potentially larger payouts over the long run. The best choice depends on your investment timeline — longer horizons often favor dividend growers for their compounding power.
DRIPs issue new shares using dollar-cost averaging at the prevailing market price when dividends are paid. The calculator multiplies your shares owned by the dividend per share each period, then divides that dividend income by the current share price to determine how many new fractional shares are added to your account.
Yes. In most countries, reinvested dividends are treated as taxable income in the year they are paid, even if you never received cash. You should account for dividend taxes (entered as the tax rate in this calculator) when projecting your net returns from DRIP investing.
DRIP calculator results are projections based on your assumed rates of dividend yield, dividend growth, and share price appreciation. Actual returns will vary — dividends can be cut, share prices fluctuate, and growth rates may not hold steady. Use the results as a planning guide, not a guarantee.