DRIP Example: 10% 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 10%
- Annual stock appreciation assumes 10% (same as dividend increase rate)
| Year | Invested: | Reinvested Dividends | Total Cost Basis: | Total Value: |
| 1 | $1,101.00 | $10.97 | $1,111.97 | $1,166.48 |
| 2 | $2,301.00 | $53.87 | $2,354.87 | $2,592.13 |
| 3 | $3,501.00 | $132.73 | $3,633.73 | $4,198.24 |
| 4 | $4,701.00 | $252.12 | $4,953.12 | $6,007.62 |
| 5 | $5,901.00 | $417.16 | $6,318.16 | $8,046.03 |
| 6 | $7,101.00 | $633.63 | $7,734.63 | $10,342.43 |
| 7 | $8,301.00 | $908.03 | $9,209.03 | $12,929.50 |
| 8 | $9,501.00 | $1,247.71 | $10,748.71 | $15,844.01 |
| 9 | $10,701.00 | $1,660.92 | $12,361.92 | $19,127.42 |
| 10 | $11,901.00 | $2,156.96 | $14,057.96 | $22,826.41 |
| 11 | $13,101.00 | $2,746.34 | $15,847.34 | $26,993.59 |
| 12 | $14,301.00 | $3,440.85 | $17,741.85 | $31,688.21 |
| 13 | $15,501.00 | $4,253.80 | $19,754.80 | $36,977.03 |
| 14 | $16,701.00 | $5,200.19 | $21,901.19 | $42,935.27 |
| 15 | $17,901.00 | $6,296.91 | $24,197.91 | $49,647.65 |
| 16 | $19,101.00 | $7,562.98 | $26,663.98 | $57,209.63 |
| 17 | $20,301.00 | $9,019.83 | $29,320.83 | $65,728.73 |
| 18 | $21,501.00 | $10,691.62 | $32,192.62 | $75,326.10 |
| 19 | $22,701.00 | $12,605.55 | $35,306.55 | $86,138.23 |
| 20 | $23,901.00 | $14,792.27 | $38,693.27 | $98,318.86 |