Dividend reinvestment

Let dividends compound.

See the gap between reinvesting every dividend and taking it as cash. Over decades that gap is the whole point of total return. The rates you enter are assumptions, not guarantees.

Dividend reinvestment (DRIP)

Compare reinvesting every dividend to buy more shares against taking them as cash. The difference is compounding — small at first, large over decades. Rates are assumptions, not promises.

Starting amount ($)

Dividend yield (%)

Share price growth (%/yr)

Dividend growth (%/yr)

Years

After 25 years, reinvesting is worth$70,903

Reinvested $70,903 Taken as cash $48,182

Reinvesting leaves you $22,721 ahead (+47.2%) versus taking the $14,318 of dividends as cash.

Year 1Year 25

Educational only — not financial advice. Assumes a notional starting price, dividends paid and reinvested once a year, and steady average rates; real dividends, prices, and taxes vary.