Portfolio Parameters
Portfolio Value Over Time
With vs. without dividend reinvestment
Annual Dividend Income
How your yearly dividend payments grow as shares compound
Year-by-Year Breakdown
| Year | Shares | Price | Div/Share | Annual Income | Total Invested | Portfolio Value | Total Return |
|---|
How DRIP Investing Works
DRIP stands for Dividend Reinvestment Plan. Instead of receiving dividend payments as cash, you automatically use those dividends to purchase additional shares of the same stock or ETF. Over time, each new share generates its own dividends, which buy even more shares — a compounding cycle that can significantly accelerate wealth accumulation compared to simply holding shares and taking dividends as cash.
Why Reinvesting Dividends Matters
The difference between reinvesting and not reinvesting dividends is substantial over long time horizons. A $10,000 investment in the S&P 500 from 1990 to 2020 would have grown to roughly $97,000 without dividend reinvestment, but to approximately $165,000 with dividends fully reinvested. That $68,000 gap — nearly 70% more — comes entirely from compounding reinvested dividends, not from the stock price itself.
How to Use This Calculator
Enter a stock or ETF ticker to auto-fill the current share price and dividend yield, or fill in values manually. Set your initial investment, any planned monthly contributions, an assumed annual dividend growth rate, and your time horizon. The calculator shows your projected portfolio value year by year, breaking down how much comes from your contributions versus compounded dividend reinvestment. The annual dividend growth rate field is particularly important — many high-quality dividend stocks have grown their dividends by 5–10% per year over long periods, which dramatically improves long-term results.