DRIP Example: 12% Annual Dividend Increase
The following example assumes the following:
- Starting value of $1
- $100 contribution each month
- Starting dividend yield of 2.5%
- Annual increase in dividend of 12%
- Annual stock appreciation assumes 12% (same as dividend increase rate)
| Year | Invested: | Reinvested Dividends | Total Cost Basis: | Total Value: |
| 1 | $1,101.00 | $10.90 | $1,111.90 | $1,177.10 |
| 2 | $2,301.00 | $54.00 | $2,355.00 | $2,640.57 |
| 3 | $3,501.00 | $134.02 | $3,635.02 | $4,318.93 |
| 4 | $4,701.00 | $256.39 | $4,957.39 | $6,243.73 |
| 5 | $5,901.00 | $427.31 | $6,328.31 | $8,451.16 |
| 6 | $7,101.00 | $653.93 | $7,754.93 | $10,982.71 |
| 7 | $8,301.00 | $944.41 | $9,245.41 | $13,885.98 |
| 8 | $9,501.00 | $1,308.14 | $10,809.14 | $17,215.55 |
| 9 | $10,701.00 | $1,755.87 | $12,456.87 | $21,034.01 |
| 10 | $11,901.00 | $2,299.93 | $14,200.93 | $25,413.15 |
| 11 | $13,101.00 | $2,954.48 | $16,055.48 | $30,435.29 |
| 12 | $14,301.00 | $3,735.72 | $18,036.72 | $36,194.85 |
| 13 | $15,501.00 | $4,662.28 | $20,163.28 | $42,800.12 |
| 14 | $16,701.00 | $5,755.47 | $22,456.47 | $50,375.26 |
| 15 | $17,901.00 | $7,039.78 | $24,940.78 | $59,062.68 |
| 16 | $19,101.00 | $8,543.27 | $27,644.27 | $69,025.71 |
| 17 | $20,301.00 | $10,298.10 | $30,599.10 | $80,451.65 |
| 18 | $21,501.00 | $12,341.20 | $33,842.20 | $93,555.31 |
| 19 | $22,701.00 | $14,714.89 | $37,415.89 | $108,583.02 |
| 20 | $23,901.00 | $17,467.71 | $41,368.71 | $125,817.31 |