DRIP Calculator
Dividend Reinvestment Plan: every dividend automatically buys more shares. See how compounding on top of share-price growth turbo-charges long-term returns.
Inputs
How it works
Each year: (1) grow price by pg%, (2) grow dividend per share by dg%, (3) annual income = shares × new dividend, (4) if DRIP: buy income ÷ new price additional shares. Portfolio value = shares × price.
Frequently asked questions
How does DRIP beat taking cash dividends?
Every dividend buys more shares, which pay more dividends, which buy more shares. Over 20+ years the compounding effect is dramatic.
Are DRIP dividends still taxed?
Yes — in a taxable account, reinvested dividends are still taxable income in the year received. Only inside an IRA/401(k) do you avoid this.
Do all stocks offer DRIP?
Most brokers now offer synthetic DRIP for any dividend-paying stock or ETF, including fractional shares — no need to enroll in a company plan.
What's a realistic dividend growth rate?
S&P 500 dividend growth has averaged ~5–6%/yr over the past decades. Individual 'dividend aristocrats' have raised payouts 25+ years in a row.
Does this include taxes on dividends?
No — set price growth = net-of-tax if you want an after-tax projection.