Dividend Growth & DRIP Calculator
See how dividend growth and reinvestment build wealth over time. Model different yield, growth, and contribution scenarios. Compare DRIP vs taking dividends as cash and track your projected yield on cost.
Educational purposes only.
Dividends are not guaranteed and can be reduced or eliminated at any time. Past dividends do not predict future payments. Growth rates shown are hypothetical projections, not guarantees.
Educational purposes only. These calculators illustrate concepts and do not constitute investment advice. Read our disclaimer
StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.How It Works
Enter your investment details
Set your initial investment amount, share price, and any monthly contributions you plan to make.
Set dividend and growth rates
Enter the current dividend yield, expected dividend growth rate, and share price growth rate.
Toggle DRIP on or off
See how reinvesting dividends accelerates portfolio growth compared to taking dividends as cash.
Review your projection
View year-by-year portfolio value, cumulative dividends, and yield on cost in the chart and table.
Frequently Asked Questions
Yield on cost (YOC) measures your current annual dividend income as a percentage of your original purchase price (cost basis). If you bought shares at $50 and now receive $4/year in dividends, your YOC is 8%. YOC rises over time if the company increases its dividend, even though the current yield based on today's price may be lower.
DRIP automatically uses your dividend payments to purchase additional shares of the stock, including fractional shares. This compounds your investment over time without requiring additional capital from you. Most brokers offer free DRIP enrollment. The calculator shows the difference DRIP makes over time.
Dividend Aristocrats are S&P 500 companies that have increased their dividend for at least 25 consecutive years. They represent companies with consistent profitability and shareholder-friendly policies. However, past dividend growth does not guarantee future increases.
A very high dividend yield (above 8-10%) can be a warning sign. The yield may be high because the stock price dropped significantly due to business problems, or because the company is paying out more than it can sustain. A high yield from a falling stock price is called a "yield trap" because the dividend may be cut.
Qualified dividends (held 60+ days, from US companies or qualifying foreign ones) are taxed at long-term capital gains rates: 0%, 15%, or 20% depending on income. Non-qualified dividends are taxed as ordinary income. Dividends in tax-advantaged accounts (IRA, 401k, Roth IRA) grow tax-deferred or tax-free.
It depends on your time horizon. Higher current yield provides more income now but may grow slowly. Lower yield with faster dividend growth may produce more income over a long period through compounding. For example, a 2% yield growing 10%/year can surpass a static 5% yield within 10-15 years. Use this calculator to compare scenarios.
Dividend yield is the current annual dividend divided by the current share price — it tells you what percentage income you get today. Dividend growth rate is how much the company increases its dividend each year. A company with a 3% yield and 10% growth raises its per-share payout by 10% annually, even though the yield percentage may stay similar as the share price also rises.