Dividend reinvestment

DRIP Calculator

Estimate how dividend reinvestment can affect share count, annual dividend income, cumulative dividends, contributions, and scenario value over time. The calculation uses market preloads only when available, plus your inputs and assumptions.

Free calculator

Model a dividend reinvestment scenario

Results are calculated from your inputs and assumptions. They are not an AlgovestIQ forecast or investment recommendation.

%
%
yrs
Projected value
$52,604
Annual dividend income
$2,399
Cumulative dividends
$22,630
Total contributions
$0
Future shares
480.16
Ending cash value
$52,604

Scenario summary

Starting shares
200
Reinvested shares
280.16
New contribution shares
0
Final share price assumption
$109.56
Total scenario return
426.04%

Market-derived inputs

Loaded security
Manual scenario
Reference price
$50.00

Your assumption - not loaded from public data

Annual dividend/share
$2.00

Your assumption - not loaded from public data

Current yield
4%

Your assumption - not loaded from public data

Price, dividend, and frequency can preload from market data. Growth, contribution, and reinvestment choices are assumptions.

Dividend income by year

Year 1$414
Year 2$452
Year 3$494
Year 4$541
Year 5$592
Year 6$648
Year 7$709
Year 8$777
Year 9$852
Year 10$934
Year 11$1,024
Year 12$1,124

Showing the first 12 years. Final-year results are summarized above.

How the DRIP calculation works

The calculator starts from either your initial investment or starting share count. For each dividend payment, it multiplies shares by the dividend per share. If reinvestment is on, the payment buys additional shares at the scenario share price for that period.

Core formula

New shares = dividend cash received / scenario share price

Dividend cash received = shares owned x dividend per share per payment

Input definitions

Initial investment
Cash amount used to estimate the starting share count.
Starting shares
Known shares owned today, if you prefer not to use an investment amount.
Dividend per share per payment
The cash dividend paid for each share on each payment date.
Dividend growth
Annual scenario assumption for how the dividend changes over time.
Price growth
Annual scenario assumption for the share price used when reinvesting.

Worked example

Suppose an investor starts with $10,000, adds $100 monthly, uses a $50 share price, a $0.50 quarterly dividend, 5% annual dividend growth, 4% annual price growth, and a 20-year horizon. With reinvestment on, each quarterly dividend buys more shares, so later dividend payments are calculated from a larger share base.

This is useful for comparing scenarios: reinvestment on versus off, higher or lower dividend growth, or a shorter holding period. The calculator does not decide which assumption is likely.

DRIP calculator FAQ

What does a DRIP calculator do?

A DRIP calculator models how dividend reinvestment may change future shares, dividend income, cumulative dividends, and ending portfolio value based on the assumptions you enter.

Are these DRIP results a forecast?

No. The calculator output is a scenario based on your inputs for dividends, dividend growth, price growth, payment frequency, and time horizon. It is not an AlgovestIQ forecast or investment recommendation.

Should dividend per share be annual or per payment?

This calculator uses dividend per share per payment. For a quarterly stock paying one dollar per year, enter 0.25 as the dividend per share and choose quarterly frequency.

What changes when dividend reinvestment is off?

When reinvestment is off, dividends are tracked as cash income instead of being used to buy more shares in the scenario.