Dividend DRIP Compounding
10-year portfolio forecast with contributions vs growth split.
Assumes 7% annualized return with dividends reinvested monthly.
Projected Portfolio (10 yrs)
$104,280 USD
Growth over 10 years
Total Contributions
$70,000
Reinvested Growth
$34,280
Reinvested dividends are why long-term portfolios outpace the money you actually put in.
Did you know?
Coca-Cola has paid and grown its dividend for over 60 consecutive years — one reason Warren Buffett's stake now yields enormous passive income.
Formula
Monthⁿ⁺¹ = (Value + Contribution) × (1 + 7%/12)
FAQs
Why DRIP?
Reinvesting dividends compounds share accumulation — your income snowballs over decades.