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Dividend reinvestment

What could reinvested dividends and monthly adds grow to at a constant yield?

Your numbers

Ending value with DRIP

$288,225

Cash you put in$170,000
Dividends and growth$118,225

Tip. Educational estimate with the assumptions listed on this page. Not tax, legal, or investment advice.

Assumptions

  • Yield is constant and fully reinvested.
  • Price changes, dividend cuts, and taxes are ignored.
  • Monthly additions are treated as an annual end-of-year contribution equal to 12 months.

Explore the numbers

Examples

Load a scenario, then change one input at a time.

Example 1

Builder

$50k plus $500 a month at 4%.

Ending value with DRIP

$288,225

Example 2

No adds

DRIP only.

Ending value with DRIP

$109,556

Example 3

Higher yield

6% with the same cash.

Ending value with DRIP

$381,070

What this calculates

Project a dividend or yield portfolio with DRIP and optional monthly contributions at a constant annual yield.

How to use it

  1. Use a net yield after foreign tax and fund expense if you want a conservative line.
  2. If you spend the dividends, set monthly add to 0 and treat yield as income instead.
  3. Compare with compound savings growth if total return matters more than yield.

Common mistakes

  • Assuming a 8% stock yield with no cut risk.
  • Ignoring that reinvested dividends are often taxable in a brokerage account.
  • Counting yield and price growth twice.

Formula

FV = principal × (1+r)^n + annual adds × ((1+r)^n − 1) / r, with r as yield.

FAQ

Is this total return?

It compounds the yield you enter. If you want price growth too, raise the rate or use the compound savings tool.

Roth vs taxable?

In a Roth, the projection is closer to spendable. In taxable, haircut the yield.

What yield should a diversified investor use?

Broad equity indexes are often in the 1% to 2% range. Higher yields usually mean more concentration or more risk.

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