DRIP Calculator
Calculate the power of reinvesting dividends automatically. See how DRIP compounds your share count and income over time.
DRIP Settings
DRIP VALUE AFTER 20 YEARS
235.8 shares × $132.66
DRIP VS TAKING CASH DIVIDENDS
DRIP advantage: +$3,265 (11.7% more wealth)
Frequently Asked Questions
What is a DRIP?
A Dividend Reinvestment Plan (DRIP) automatically uses dividend payments to purchase additional shares instead of paying cash. Many brokers offer commission-free DRIPs.
How much more do you earn with DRIP vs cash dividends?
Over 30 years, a DRIP investor in a 4% yielding stock growing dividends at 6%/year would end up with roughly 2-3× more wealth than taking dividends in cash.
What stocks are best for DRIP?
Dividend Aristocrats — companies that have grown dividends for 25+ consecutive years — are ideal for DRIP. Examples include Johnson & Johnson, Coca-Cola, Procter & Gamble, and Realty Income.
Related Calculators
For educational purposes only. Not financial advice. Consult a qualified advisor before making investment decisions.