See how reinvesting dividends automatically (DRIP) can dramatically accelerate your portfolio growth compared to taking dividends as cash.
| Year | DRIP Value | No DRIP Value | DRIP Advantage |
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A Dividend Reinvestment Plan (DRIP) automatically uses your dividend payments to purchase additional shares instead of paying them out as cash. Over time, this creates a powerful compounding effect — your new shares generate their own dividends, which buy even more shares.
This calculator shows the difference between reinvesting dividends versus taking them as cash, factoring in stock price appreciation, your monthly contributions, and optional dividend taxes.
Each reinvested dividend buys more shares that generate future dividends — creating a snowball effect over time.
Most brokers offer commission-free DRIP enrollment, making it one of the most efficient ways to compound wealth.
DRIP captures both price appreciation and dividend income, maximizing total return over long holding periods.
Disclaimer: For educational purposes only. Not financial advice.