Dividend Reinvestment Calculator - See How Much Returns Increase With Dividend Reinvestment

With dividend reinvestment you can increase the number of shares that you own without spending any new money. Each time a stock pays a dividend, it is converted into shares, the number of which is equal to the dollar amount of the dividend divided by the current stock price.

Over many years reinvested dividends add up to help increase the value of your holdings.

Use the Dividend Reinvestment Calculator to compare the future value of an investment with and without dividend reinvestment. For example, suppose you started with 100 shares of a $50 stock with a 3% dividend yield, a 1% annual dividend growth rate and a 5% annual stock price growth rate. What would the shares be worth with and without dividend reinvestment?

If you held the stock for 30 years, your stock without dividend reinvestment would be worth $27,143.12 a 5.8 percent annualized return. With dividend reinvestment, it would be worth $36,790.17, a 6.88 percent annualized return.

Form Input

On the calculator form, enter only numbers (with or without decimal points).

Do not enter:

Currency symbols like dollar signs
Commas
Percent signs

Dividend Reinvestment Calculator
Initial Number of Shares:
Initial Price per Share:	$
Dividend Yield:	%
Dividend Growth Rate:	%
Stock Price Growth Rate:	%
Number of Years:

Calculator Results
	Without Dividend Reinvestment	With Dividend Reinvestment
Total Value
Number Shares
Dividends Paid
Annualized Return	%	%

Calculator Results and and Computational Notes:

The total value for without dividend reinvestment equals the final stock price multiplied by the initial number of shares added to the sum of all dividends paid. The number of shares is simply the initial number of shares.

The total value for with dividend reinvestment equals the final stock price multiplied by the sum of the initial number of shares plus all dividend reinvestment shares. The number of shares is the initial number of shares plus all the shares purchased with reinvested dividends.

The dividends paid for without dividend reinvestment is the sum of yearly dividends paid on the initial number of shares.

The dividends paid for with dividend reinvestment is the sum of yearly dividends paid on the initial number of shares and the reinvested dividends shares.

The annualized return for without and with dividend reinvestment is based on the value of the stock at the beginning of the first year (initial stock price multiplied by the initial number of shares) and the final value of the investment (Total Value).

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Updated March 8, 2010.