Dividend Reinvestment

The Dividend Reinvestment (DRIP) Calculator shows the compounding effect of automatically reinvesting dividend payments to buy additional shares. Over time, these additional shares generate their own dividends, creating a powerful compounding cycle. Enter your initial investment, dividend yield, expected dividend growth rate, expected price appreciation, and time horizon to see how your share count, portfolio value, and annual dividend income grow through reinvestment. Historically, dividend reinvestment accounts for roughly 40% of the total return of the S&P 500. This calculator makes that invisible compounding visible, showing how a modest initial investment can grow into a substantial income stream over 20-30 years.