Calculate how dividend reinvestment grows your portfolio over time. Compare DRIP vs cash dividends, project share growth, and see future value.
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Dividend reinvestment, often called DRIP, uses cash dividends to buy more shares instead of paying them out. Over time, those extra shares create more dividends, which buy more shares and compound your returns. This calculator compares DRIP vs cash dividends so you can see the long-term difference at a glance.
Dividend reinvestment automatically turns dividend payments into additional shares. If you own 100 shares and receive a dividend, the payout can buy fractional shares at the current market price. As your share count grows, future dividends usually grow too. It is one of the simplest ways to let compounding work inside a portfolio.
Core Formula
See the gap between reinvesting dividends and taking them as cash, which makes the long-term tradeoff easy to understand.
Use share price growth, dividend growth, and an investment horizon together so the projection feels closer to a real investment plan.
Track how reinvested dividends can build more shares and future income over time instead of staying flat.
The calculator shows the assumptions behind every projection, so the result is easier to explain and trust.
Estimate how much a dividend portfolio could be worth by the time you retire if dividends are reinvested.
Check whether reinvesting dividends produces a meaningfully larger long-term portfolio than taking the cash.
See how reinvestment can increase the share count that will later generate income.
Compare conservative, balanced, and high-yield dividend assumptions before you buy or rebalance.
DRIP stands for Dividend Reinvestment Plan. Instead of paying dividends out as cash, the dividend is used to buy more shares, often automatically.
It depends on your goal. Reinvesting usually helps long-term growth because extra shares can earn future dividends, but cash may be better if you need the income now.
Yes. You can model both share price growth and dividend growth so the projection reflects more than just the dividend payout itself.
Fractional shares let every dividend dollar stay invested instead of leaving cash idle. That is a big part of why reinvestment compounds over time.
Dividend yield is the current payout relative to share price. Dividend growth is the rate at which that payout increases over time.
No. Reinvested dividends are usually still taxable when they are paid, even if the cash is used to buy more shares. Tax treatment depends on your account type and location.