Dividend investing is a popular strategy for building long-term wealth, but the real magic happens when you reinvest those dividends.
This process is often automated through a Dividend Reinvestment Plan (DRIP).
A DRIP allows you to automatically reinvest your cash dividends into additional shares or fractional shares of the underlying stock.
Instead of receiving a check or a deposit into your brokerage account, the money is used to buy more stock.
The primary benefit of a DRIP is compounding.
It's one thing to read about compounding, but it's another to see it.
Use our calculator below to simulate how reinvesting dividends can impact your portfolio over 10, 20, or even 30 years.
Automatically pull latest yield and historical growth data for any stock.
Found this helpful? Share it with other investors!
Ready to find the best dividend stocks for your portfolio?
Subscribe to Premium for instant access to advanced metrics!