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Dividend Reinvestment Calculator

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 $150 stock with a $3 annual dividend, a 1% annual dividend growth rate and a 4% annual stock price growth rate. What would the shares be worth with and without dividend reinvestment?

If you held the stock for 20 years, your stock without dividend reinvestment would be worth $39,538.61, a 4.97 % annualized return. With dividend reinvestment, it would be worth $44,193.06, a 5.55% 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 or percent signs.


Dividend Reinvestment Calculator
Initial Number of Shares:
 
Initial Stock Price per Share:
$
Annual Dividend:
$
Dividend Annual Growth Rate:
      %
Stock Price Annual 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 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 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 without dividend reinvestment is the sum of yearly dividends paid on the initial number of shares.

The dividends paid 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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