Enter your initial investment, annual dividend yield, expected dividend growth rate, and time horizon to see how reinvesting dividends accelerates your wealth through compounding.
| 5 | $12,480 | $11,750 | +$730 |
| 10 | $16,290 | $13,500 | +$2,790 |
| 15 | $22,510 | $15,250 | +$7,260 |
| 20 | $32,620 | $17,000 | +$15,620 |
| 30 | $74,830 | $20,500 | +$54,330 |
Dividend reinvestment creates a compounding snowball effect. Each reinvested dividend buys more shares, which generate more dividends, which buy even more shares. Over 20-30 years, this can triple or quadruple your total return compared to taking dividends as cash. The effect is most powerful with 'dividend growth' stocks — companies that raise their dividend every year. Even a modest 3% yield with 7% annual growth becomes an 11.6% yield on your original investment after 20 years.
