High Dollar DRIP Example: 7% 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 7%
- Annual stock appreciation assumes 7% (same as dividend increase rate)
| Year | Invested: | Reinvested Dividends |
Total Cost Basis: |
Total Value: |
| 1 | $5,501.00 | $55.25 | $5,556.25 | $5,747.74 |
| 2 | $11,501.00 | $268.11 | $11,769.11 | $12,595.25 |
| 3 | $17,501.00 | $653.75 | $18,154.75 | $20,101.32 |
| 4 | $23,501.00 | $1,228.77 | $24,729.77 | $28,329.29 |
| 5 | $29,501.00 | $2,011.40 | $31,512.40 | $37,348.57 |
| 6 | $35,501.00 | $3,021.60 | $38,522.60 | $47,235.28 |
| 7 | $41,501.00 | $4,281.25 | $45,782.25 | $58,072.85 |
| 8 | $47,501.00 | $5,814.35 | $53,315.35 | $69,952.71 |
| 9 | $53,501.00 | $7,647.19 | $61,148.19 | $82,975.11 |
| 10 | $59,501.00 | $9,808.61 | $69,309.61 | $97,249.93 |
| 11 | $65,501.00 | $12,330.20 | $77,831.20 | $112,897.63 |
| 12 | $71,501.00 | $15,246.61 | $86,747.61 | $130,050.25 |
| 13 | $77,501.00 | $18,595.80 | $96,096.80 | $148,852.50 |
| 14 | $83,501.00 | $22,419.39 | $105,920.39 | $169,463.06 |
| 15 | $89,501.00 | $26,763.02 | $116,264.02 | $192,055.83 |
| 16 | $95,501.00 | $31,676.69 | $127,177.69 | $216,821.45 |
| 17 | $101,501.00 | $37,215.24 | $138,716.24 | $243,968.89 |
| 18 | $107,501.00 | $43,438.75 | $150,939.75 | $273,727.22 |
| 19 | $113,501.00 | $50,413.10 | $163,914.10 | $306,347.56 |
| 20 | $119,501.00 | $58,210.51 | $177,711.51 | $342,105.13 |