High Dollar DRIP Example: 10% Annual Dividend Increase
The following example assumes the following:
- Starting value of $1
- $500 contribution each month
- Starting dividend yield of 2.5%
- Annual increase in dividend of 10%
- Annual stock appreciation assumes 10% (same as dividend increase rate)
| Year | Invested: | Reinvested Dividends |
Total Cost Basis: |
Total Value: |
| 1 | $5,501.00 | $54.75 | $5,555.75 | $5,827.90 |
| 2 | $11,501.00 | $269.12 | $11,770.12 | $12,955.60 |
| 3 | $17,501.00 | $663.32 | $18,164.32 | $20,985.46 |
| 4 | $23,501.00 | $1,260.12 | $24,761.12 | $30,031.67 |
| 5 | $29,501.00 | $2,085.14 | $31,586.14 | $40,222.87 |
| 6 | $35,501.00 | $3,167.30 | $38,668.30 | $51,703.99 |
| 7 | $41,501.00 | $4,539.11 | $46,040.11 | $64,638.28 |
| 8 | $47,501.00 | $6,237.26 | $53,738.26 | $79,209.68 |
| 9 | $53,501.00 | $8,303.04 | $61,804.04 | $95,625.40 |
| 10 | $59,501.00 | $10,782.99 | $70,283.99 | $114,118.87 |
| 11 | $65,501.00 | $13,729.52 | $79,230.52 | $134,953.09 |
| 12 | $71,501.00 | $17,201.70 | $88,702.70 | $158,424.32 |
| 13 | $77,501.00 | $21,266.05 | $98,767.05 | $184,866.33 |
| 14 | $83,501.00 | $25,997.53 | $109,498.53 | $214,655.14 |
| 15 | $89,501.00 | $31,480.58 | $120,981.58 | $248,214.36 |
| 16 | $95,501.00 | $37,810.32 | $133,311.32 | $286,021.20 |
| 17 | $101,501.00 | $45,093.91 | $146,594.91 | $328,613.30 |
| 18 | $107,501.00 | $53,452.10 | $160,953.10 | $376,596.34 |
| 19 | $113,501.00 | $63,020.90 | $176,521.90 | $430,652.64 |
| 20 | $119,501.00 | $73,953.52 | $193,454.52 | $491,550.92 |