How Much Will Your Dividend Portfolio Grow?
Model the compounding power of reinvesting dividends alongside regular contributions. Set your yield, price growth, and time horizon.
Reinvested dividends account for nearly half of the stock market's total historical return.
$200+
average monthly forgotten subscriptions the typical US household pays
10–15×
long-term investment multiplier on monthly savings at 7% over 30 years
60%
of people underestimate their monthly subscription spend by this margin
The power of stopping the drip
Why reinvesting dividends matters
Studies show that reinvested dividends account for 40–50% of the S&P 500's total long-run return. Over a 30-year period, an investor who reinvests dividends ends up with roughly twice the portfolio value of one who takes dividends as cash.
The best stocks for DRIP investing
Dividend Aristocrats (companies that have raised dividends for 25+ consecutive years) are popular DRIP choices: Johnson & Johnson, Coca-Cola, Procter & Gamble. ETFs like SCHD automate diversified dividend reinvestment.
Tax considerations
Reinvested dividends are still taxable in the year received, even if you don't take the cash. In a tax-advantaged account like a Roth IRA or 401(k), DRIP investing is especially powerful because growth is tax-free.
How the DRIP Calculator Works
The calculator combines dividend yield and price growth into a total annual return rate. It then calculates the future value of both your lump-sum initial investment and monthly contributions compounded at that rate.
Formula: FV = initial × (1 + monthlyRate)^months + monthlyContrib × ((1 + monthlyRate)^months − 1) / monthlyRate. The total gain is the final value minus all contributions made.