Dividend reinvestment (DRIP) means every dividend payment automatically buys more shares instead of being paid out as cash. Over long periods this compounds meaningfully, since each reinvestment buys shares that then earn their own future dividends.

Does this account for dividend taxes?

No — this projects gross dividend growth and reinvestment. In a taxable account, dividends are typically taxed in the year received (even if reinvested), which would reduce the amount actually available to reinvest. Tax-advantaged accounts like a Roth or traditional IRA avoid this drag.

Retirement & Investment

Dividend Growth & Reinvestment Calculator

Project dividend income and portfolio value over time \u2014 with dividend growth, price growth, and reinvestment all compounding together.

Formula reviewed against the Gordon Growth (dividend discount) model · Last checked Aug 2026 · methodology

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Formula

How the projection is built

Each year: reinvest dividends + contributions at the new price

Dividend/shareGrows each year by your dividend growth rate

Share priceGrows each year by your price growth rate

New shares(Dividend received + contribution) \u00f7 that year's share price

Portfolio valueTotal shares \u00d7 final share price

FAQ

Common questions

A company's dividend per share and its stock price don't necessarily grow at the same rate — a company can raise its dividend faster than its stock price moves, or vice versa. Keeping them separate gives a more realistic projection than assuming a fixed yield forever.

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