DRIP Calculator
Model dividend reinvestment growth over time.
See how reinvesting dividends accelerates portfolio growth through compounding. Compare your returns with and without dividend reinvestment to understand the long-term impact of a DRIP strategy.
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Enter your investment details to model DRIP growth.
Understanding DRIP
A Dividend Reinvestment Plan (DRIP) automatically uses your dividend payments to purchase additional shares instead of paying out cash. This creates a compounding effect where your reinvested dividends generate their own dividends, accelerating portfolio growth over time. The longer your investment horizon, the more powerful this snowball effect becomes. Many brokerages offer commission-free DRIP programs, and some companies even offer discounted share purchases through their direct DRIP programs.