Dividend Reinvestment Calculator
See how dividend yield, dividend growth, and reinvesting dividends may shape long-term portfolio growth and future income.
What this calculator shows
It projects a portfolio that grows through price appreciation and dividends, where the dividend yield itself grows over time. You can reinvest dividends to compound them, or take them as cash, and compare the two. Every input is an assumption — not a forecast or advice.
Inputs
Set your assumptions for growth, yield, and dividend growth, then choose whether to reinvest.
What you start with today.
Added at the end of each month.
How long the portfolio compounds.
Price growth only, compounded monthly.
Annual dividends as a percent of value.
How fast the yield grows each year.
Used to estimate purchasing power.
Yes reinvests dividends to compound them. No takes them as cash.
Share or bookmark this scenario.
Results
How the portfolio and its dividend income could develop under these assumptions.
Final portfolio value
$2,143,683
Dividends reinvested.
Total dividends received
$1,305,577
All reinvested.
Annual dividend income (final year)
$235,616
At a 12.3% yield.
Monthly dividend income (final year)
$19,635
Final-year annual income ÷ 12.
Inflation-adjusted value
$1,021,985
In today's dollars.
Gain from reinvesting
$1,692,776
Vs. taking dividends as cash.
Dividend assumptions are hypothetical. Real dividends may increase, decrease, or stop entirely. This model assumes a steady return and does not account for taxes, payout ratios, share-price drag, dividend cuts, or fees.
Portfolio growth
Projected portfolio value over time, in nominal and inflation-adjusted terms.
Annual dividend income
The dividend paid each year, which rises as both the portfolio and the yield grow.
Cumulative dividends received
The running total of every dividend paid across the projection.
Insights
What the model shows about dividends and total return — and what it deliberately leaves out.
Income grows two ways
Dividend income grows because both the portfolio and the dividend yield increase over time.
Reinvesting compounds
Reinvesting added $1,692,776 to the portfolio versus taking dividends as cash, because each reinvested dividend compounds future payments.
Future income
Under these assumptions, dividend income reaches $235,616 a year ($19,635 a month) by year 30.
Yield is only one part
Yield alone does not determine total return — price appreciation matters too, and a high yield is not automatically better.
Growth can beat yield
Under these assumptions, a lower yield that grows faster can eventually out-earn a higher yield that stays flat.
Inflation still applies
Inflation reduces the purchasing power of both the portfolio and the dividend income it produces.
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Total Return Calculator
See your complete return from price gains plus income like dividends, and what it works out to per year.
Try the Total Return CalculatorYear-by-year breakdown
Portfolio value, yield, dividends, and purchasing power for each year.
| Year | Portfolio value | Dividend yield | Annual dividends | Cumulative dividends | Value (real) |
|---|---|---|---|---|---|
| 1 | $17,135 | 3% | $499 | $499 | $16,717 |
| 2 | $24,888 | 3.2% | $760 | $1,259 | $23,689 |
| 3 | $33,336 | 3.3% | $1,067 | $2,326 | $30,956 |
| 4 | $42,568 | 3.5% | $1,429 | $3,755 | $38,565 |
| 5 | $52,687 | 3.6% | $1,854 | $5,609 | $46,567 |
| 6 | $63,810 | 3.8% | $2,353 | $7,962 | $55,024 |
| 7 | $76,078 | 4% | $2,940 | $10,902 | $64,001 |
| 8 | $89,649 | 4.2% | $3,631 | $14,533 | $73,579 |
| 9 | $104,712 | 4.4% | $4,444 | $18,978 | $83,846 |
| 10 | $121,486 | 4.7% | $5,403 | $24,380 | $94,905 |
| 11 | $140,230 | 4.9% | $6,533 | $30,913 | $106,876 |
| 12 | $161,248 | 5.1% | $7,870 | $38,783 | $119,897 |
| 13 | $184,899 | 5.4% | $9,452 | $48,236 | $134,129 |
| 14 | $211,610 | 5.7% | $11,330 | $59,565 | $149,762 |
| 15 | $241,888 | 5.9% | $13,562 | $73,127 | $167,016 |
| 16 | $276,342 | 6.2% | $16,223 | $89,350 | $186,151 |
| 17 | $315,699 | 6.5% | $19,403 | $108,754 | $207,476 |
| 18 | $360,835 | 6.9% | $23,215 | $131,969 | $231,355 |
| 19 | $412,811 | 7.2% | $27,797 | $159,766 | $258,224 |
| 20 | $472,912 | 7.6% | $33,324 | $193,091 | $288,604 |
| 21 | $542,708 | 8% | $40,014 | $233,104 | $323,121 |
| 22 | $624,119 | 8.4% | $48,140 | $281,244 | $362,529 |
| 23 | $719,510 | 8.8% | $58,048 | $339,293 | $407,744 |
| 24 | $831,802 | 9.2% | $70,180 | $409,473 | $459,883 |
| 25 | $964,625 | 9.7% | $85,097 | $494,570 | $520,310 |
| 26 | $1,122,513 | 10.2% | $103,520 | $598,090 | $590,705 |
| 27 | $1,311,155 | 10.7% | $126,380 | $724,470 | $673,146 |
| 28 | $1,537,733 | 11.2% | $154,884 | $879,354 | $770,216 |
| 29 | $1,811,363 | 11.8% | $190,607 | $1,069,961 | $885,143 |
| 30 | $2,143,683 | 12.3% | $235,616 | $1,305,577 | $1,021,985 |
How this calculator works
An educational model, not a forecast. Price appreciation compounds monthly, contributions are added at the end of each month, and dividends are paid once a year at a yield that grows annually.
What dividend yield means
The annual dividend paid as a percentage of the portfolio's value. A 3% yield on $100,000 pays about $3,000 a year.
What dividend growth means
How fast the dividend rises each year. Growing dividends can lift income over time even if you never add new money.
What reinvesting means
Using each dividend to buy more of the portfolio, so the next dividend is paid on a larger base — compounding the income.
Total return
Total return combines price appreciation and dividends. Dividends are part of that return, not a bonus on top of it.
Why yield is not free money
In reality, paying a dividend typically lowers a share's price. A high yield is not extra return — it is part of total return.
Why yield alone is not quality
A high yield can signal a struggling company. Dividend safety, growth, and total return matter more than yield by itself.
This is one of several educational models on Rionux. See how we model these projections across all our tools.
Related concepts
Keep exploring the ideas behind dividend investing.
Frequently asked questions
Common questions about dividend reinvestment, yield, and total return.
What is dividend reinvestment (DRIP)?
Dividend reinvestment means using the dividends an investment pays to buy more of it, instead of taking them as cash. Those extra shares then earn their own dividends, which can compound into a growing income stream over time.
How is dividend reinvestment calculated here?
The tool grows your investment through monthly-compounded price appreciation plus an annual dividend whose yield can grow each year. A Yes/No toggle compares reinvesting the dividends against taking them as cash, so you can see the difference side by side.
Should I reinvest dividends or take them as cash?
It depends on whether you need the income now. Reinvesting can accelerate long-term growth through compounding; taking cash provides income today. This tool shows both paths under your assumptions so you can weigh the trade-off — it does not recommend one.
What are dividend yield and dividend growth?
Dividend yield is the annual dividend as a percentage of the price. Dividend growth is how much that dividend increases each year. Together they shape how much income an investment produces and how quickly that income rises.
Are dividends free money?
No. A dividend is part of total return, not a bonus on top of it — when a company pays a dividend, its value typically drops by roughly that amount. A high yield is also not automatically a sign of quality. What matters is total return: price change plus income.
Does this include taxes?
No. Dividends and gains can be taxed depending on your account and country, which would reduce real-world results. This model is educational and ignores taxes and fees.
Keep going
Continue your journey
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Educational use only
Educational purposes only. Calculator results are estimates based on assumptions and user inputs. They are not financial, investment, legal, or tax advice. Investing involves risk, including possible loss of principal. Past performance does not guarantee future results.