Dividend projection

Dividend Reinvestment Calculator

Compare taking modeled dividends in cash with reinvesting each payment into fractional shares.

Ending value with reinvestment—

Ending shares—

Modeled annual income at end—

Reinvest vs cash

Same dividend and price assumptions

Shares added by reinvestment—

Dividends reinvested—

Value if dividends are held as cash—

Modeled reinvestment difference—

—

Timing convention

Each payment occurs at period end and buys fractional shares at that period's modeled price. Annual price and dividend growth are converted to equivalent periodic rates.

Mechanism

Reinvestment changes the next payment's share count.

Cash dividends do not create extra shares. Reinvested dividends do, so later payments apply to a larger modeled holding.

See the reinvestment mechanics and example →

Assumptions

A smooth projection is not a market forecast.

Real prices and distributions vary. Constant annual growth rates are scenario inputs, not expected returns, and a dividend can be reduced or stopped.

Source

Cash distributions may be taken or reinvested.

FINRA explains that stock dividends can be taken in cash or reinvested to purchase more shares.

FINRA — Stocks