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Dividend Reinvestment Calculator

Dividend Reinvestment Calculator

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Calculator Results

Without Dividend Reinvestment With Dividend Reinvestment
Total Value:
Number of Shares:
Dividends Paid:
Annualized Return:

 

Dividend reinvestment is one of the most powerful wealth-building strategies. Our dividend reinvestment calculator reveals how your portfolio value grows when dividends are reinvested versus not reinvesting them.

 

Reinvesting your dividends allows you to increase the number of shares that you own without forking over a dime in new money. You simply buy new shares with every dividend payment, and let the power of compounding take over. Over the long haul, reinvesting dividends really adds up, helping to exponentially increase the value of your portfolio.

 

Simply put… without dividend reinvestment, you’re leaving money on the table.

 

How Does Our Dividend Reinvestment Calculator Work?

 

  • Initial Number of Shares: This is where you enter the amount of stock you have purchased.
  • Initial Price per Share: This is the price you entered into the investment.
  • Annual Dividend: How much income does the company pay you each year.
  • Dividend Annual Growth Rate: How much do you expect the dividend to grow each year.
  • Stock Price Annual Growth Rate: How much do you expect the share price to increase each year.
  • Number of Years: How long is your investment time frame.
  • Dividends Per Year: How many dividends does the company pay per year.

 
 

Dividend Reinvestment Plan (DRIP)

 
Consider setting up a dividend reinvestment plan. Also known as a DRIP, a dividend reinvestment plan allows investors to reinvest their cash dividends in shares or fractional shares of the dividend-paying company. This action takes place at the dividend payment date. Most of the time, these shares can be acquired commission-free. Also, many times companies may offer shares at a discounted rate.

 

Whether you’re in your early 20s or going on 40 and thinking more about retirement, make passive income a core focus. Click here to read more about passive income dividend investing.

 

To learn more about dividends and other types of investment opportunities, sign-up for our free Investment U e-letter below.