Calculator Inputs
Number of shares you currently hold or plan to buy.
$
Current market price per share.
%
Annual dividend as % of current stock price. Find this on any stock page.
%
Expected yearly increase in dividend per share. Historical S&P 500 average ~5–7%.
%
Expected annual stock price growth (excludes dividends).
yrs
Number of years to project forward. Max 50 years.
Enabled
DRIP automatically buys more shares with each dividend payment, compounding your returns over time.
Key Results
Initial Investment
$15,000
Final Value (DRIP)
$80,229
+434.86% total return
Total Dividends Received
$20,124
Capital Gains
$33,107
Yield on Cost (final year)
7.58%
Annual div ÷ original cost
DRIP Advantage
+$17,242
vs not reinvesting
Portfolio Value Over Time
Annual Dividend Income
Year-by-Year Breakdown
| Year | Stock Price | Div / Share | Shares | Annual Dividend | Cum. Dividends | Portfolio Value |
|---|---|---|---|---|---|---|
| 2027 | $159.00 | $4.500 | 102.83 | $450.00 | $450.00 | $16,350 |
| 2028 | $168.54 | $4.725 | 105.71 | $485.87 | $935.87 | $17,817 |
| 2029 | $178.65 | $4.961 | 108.65 | $524.47 | $1,460 | $19,410 |
| 2030 | $189.37 | $5.209 | 111.64 | $565.99 | $2,026 | $21,141 |
| 2031 | $200.73 | $5.470 | 114.68 | $610.63 | $2,637 | $23,020 |
| 2032 | $212.78 | $5.743 | 117.77 | $658.63 | $3,296 | $25,060 |
| 2033 | $225.54 | $6.030 | 120.92 | $710.23 | $4,006 | $27,274 |
| 2034 | $239.08 | $6.332 | 124.13 | $765.68 | $4,772 | $29,676 |
| 2035 | $253.42 | $6.649 | 127.38 | $825.26 | $5,597 | $32,282 |
| 2036 | $268.63 | $6.981 | 130.69 | $889.26 | $6,486 | $35,108 |
| 2037 | $284.74 | $7.330 | 134.06 | $957.99 | $7,444 | $38,172 |
| 2038 | $301.83 | $7.697 | 137.48 | $1,032 | $8,476 | $41,494 |
| 2039 | $319.94 | $8.081 | 140.95 | $1,111 | $9,587 | $45,095 |
| 2040 | $339.14 | $8.485 | 144.48 | $1,196 | $10,783 | $48,997 |
| 2041 | $359.48 | $8.910 | 148.06 | $1,287 | $12,070 | $53,224 |
| 2042 | $381.05 | $9.355 | 151.69 | $1,385 | $13,455 | $57,802 |
| 2043 | $403.92 | $9.823 | 155.38 | $1,490 | $14,945 | $62,760 |
| 2044 | $428.15 | $10.314 | 159.12 | $1,603 | $16,548 | $68,129 |
| 2045 | $453.84 | $10.830 | 162.92 | $1,723 | $18,271 | $73,940 |
| 2046 | $481.07 | $11.371 | 166.77 | $1,853 | $20,124 | $80,229 |
What is Dividend Yield?
Dividend yield = annual dividend per share ÷ stock price. A $150 stock paying $4.50/year in dividends has a 3% yield. Note that yield alone doesn't tell you the full story — dividend growth rate matters more for long-term compounding.
What is DRIP?
A Dividend Reinvestment Plan (DRIP) automatically buys more shares with your dividends instead of receiving cash. Over decades, this compounds powerfully — every reinvested dividend buys shares that themselves pay future dividends, creating a snowball effect.
Yield on Cost
Yield on cost = current annual dividend per share ÷ price you originally paid. If a stock you bought at $50 now pays $5/share annually, your yield on cost is 10% — far above the stock's current yield if its price rose. High yield on cost is a reward for holding quality dividend growers.
Assumptions & Limitations
This calculator assumes constant annual dividend growth and price appreciation. In reality both fluctuate year to year. The model treats DRIP as annual (most brokers do it quarterly or per dividend). Use this for directional planning, not precise prediction — for a broader look at total portfolio performance, pair it with an investment return calculator.
Frequently Asked Questions
What is a DRIP (Dividend Reinvestment Plan)?
A DRIP automatically uses dividend payments to purchase additional shares of the same stock instead of paying cash. This compounds your position over time — more shares produce more dividends, which buy more shares. Most brokerages offer free DRIP enrollment. The effect becomes dramatic over 10–20+ year horizons.
Is dividend reinvestment (DRIP) worth it?
Historically, dividend reinvestment has accounted for a significant portion of total stock market returns. Over long periods, DRIP portfolios substantially outperform non-DRIP portfolios with the same starting position, because dividends compound. The advantage is most pronounced in high-yield stocks held for 15+ years.
What is yield on cost?
Yield on cost is your current annual dividend income divided by your original cost basis. If you paid $50/share and now earn $4/year in dividends per share, your yield on cost is 8% — even if the current yield on today's market price is lower. Growing dividends increase yield on cost over time.
What dividend growth rate should I use?
Dividend Aristocrats (S&P 500 companies that have raised dividends for 25+ consecutive years) have historically grown dividends at 5–8% annually. Conservative planning uses 3–5%. Mature utilities and consumer staples often grow dividends at 3–5%, while technology companies that pay dividends tend to grow them faster.
How is dividend yield calculated?
Dividend yield is calculated as annual dividend per share divided by the current share price, expressed as a percentage. Because it uses the current price in the denominator, yield moves inversely with price even if the dollar dividend doesn't change — a falling stock price alone can make yield look higher.
Are dividends guaranteed?
No. A company's board can reduce or suspend its dividend at any time, typically during earnings declines or financial stress. This is why relying on a single high-yield stock for income carries more risk than diversifying across many dividend-paying companies or a dividend-focused fund.
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