DRIP Calculator
See the power of dividend reinvestment. Calculate how reinvesting dividends compounds your returns.
The Power of DRIP
What is DRIP? Dividend Reinvestment Plan automatically uses your dividend payments to buy more shares instead of taking cash.
Compound effect: Each new share earns its own dividends, which buy more shares, creating a snowball effect over time.
Best for long-term: DRIP shines over decades. A 3% yielding stock with DRIP can significantly outperform the same stock without reinvestment.
Tax consideration: Even with DRIP, you owe taxes on dividends in taxable accounts. Consider DRIP in tax-advantaged accounts like IRAs.
This calculator provides estimates for educational purposes only.