Dividend Reinvestment (DRIP) Calculator – Compounding Growth & Passive Income Simulator

What is a Dividend Reinvestment Plan (DRIP)?

A Dividend Reinvestment Plan (DRIP) is an automated investment arrangement where cash dividends paid by companies or ETFs are immediately and automatically used to purchase additional whole and fractional shares of the underlying asset, rather than collecting as uninvested cash.

The Compounding Flywheel of DRIP

DRIP creates a self-accelerating wealth engine:

• Fractional Share Accumulation: Dividends buy more shares each quarter at market prices, practicing effortless dollar-cost averaging.
• Accelerating Dividend Checks: Because you own more shares next quarter, your dividend payout increases, which in turn purchases even more shares.
• Dividend Growth Supercharging: Companies known as 'Dividend Aristocrats' consistently increase their annual dividend payouts, generating geometric compound growth.

Frequently asked questions

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