How this calculator works
Each year the shares you own pay the current dividend per share. With reinvestment on, dividends buy more shares at that year's price; otherwise they're held as cash. Your annual contribution buys shares too, then the share price and dividend grow at the rates you set.
Worked example
With the example values below: Ending value, $104,277 ($33,826 in dividends paid). Change any number above to run your own.
What you enter
| Input | Example |
|---|---|
| Initial investment | $10,000 |
| Annual contribution | $1,200 |
| Dividend yield | 3.5% |
| Dividend growth / yr | 5% |
| Share price growth / yr | 4% |
| Years | 20 yrs |
| Reinvest dividends? | Yes |
Frequently asked questions
What is a dividend yield?
The annual dividend per share divided by the share price. A stock paying $2 a year in dividends and trading at $50 has a 4% dividend yield. When the price falls the yield rises, so a very high yield can signal that the market expects a dividend cut.
What is a DRIP?
A dividend reinvestment plan automatically uses each dividend to buy more shares, often including fractional shares, instead of paying cash. Those new shares earn dividends of their own, which is how reinvesting compounds over time.
How are dividends taxed?
Qualified dividends are taxed at the long-term capital gains rates of 0%, 15% or 20%. To qualify you generally must hold the shares for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date. Other dividends are taxed as ordinary income. Reinvested dividends are taxed the same as cash dividends.
Grow what this calculator projects.
TruthSayer AI sends quantitative stock signals across valuations, earnings and dark-pool activity, each one traded in its own funded account first.
Estimates for planning only, not financial, tax or legal advice. Tax tools use 2026 federal figures (brackets, $16,100 / $32,200 standard deduction, $19,000 gift exclusion, $15M lifetime exemption). Rates shown as defaults are examples; replace them with quotes you actually receive.