DRIP Calculator

See how reinvesting dividends accelerates your wealth over time.

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What Is DRIP?

A Dividend Reinvestment Plan (DRIP) automatically uses your dividend payments to purchase additional shares of the same stock. Instead of receiving cash, you accumulate more shares — which in turn generate their own dividends, creating a powerful compounding snowball effect.

The magic of DRIP is most visible over long time horizons. With each dividend payment buying more shares, your share count grows exponentially. Those additional shares earn their own dividends, which buy even more shares, and so on.

Companies with a history of growing their dividends (known as "Dividend Aristocrats") amplify the DRIP effect further. When both your share count and the per-share dividend are increasing, your income stream can grow dramatically over decades.