Reinvestment timing
A dividend is calculated from assets at the start of each year and fully reinvested at that year-end.
Dividend Reinvestment Calculator
How could reinvesting dividends
change the result?
Estimate assets and annual dividends when each year's dividend is fully reinvested.
How it works
Dividends are added back
instead of taken as income.
Dividend growth assumption
The entered dividend yield is increased by the growth rate each year. Actual share prices and dividends per share may move differently.
What the estimate excludes
This is a pre-tax estimate and does not guarantee dividends or asset growth. Longer periods are more sensitive to the assumptions.
Reinvesting dividends on $10,000 for 10 years
This example uses a 4% starting yield, 3% dividend growth, and full pre-tax reinvestment.
- Initial investment
- $10,000
- Estimated value
- $15,656
- Year-10 annual dividend
- $777
No separate share-price growth is included. Because the assumed yield itself rises with dividend growth, long-term results are especially sensitive to this input.
Frequently asked questions
Are dividend growth and dividend yield the same?
No. Yield is annual dividend income relative to assets. Growth sets how quickly that assumed yield rises each year in this model.
Are dividends reinvested after tax?
No. The calculator reinvests the full pre-tax dividend. Taxes and trading costs could reduce the amount actually reinvested.
Can I add regular monthly contributions?
Not in this calculator. It models one initial investment plus reinvested dividends. Use the recurring investment calculator for added contributions.