DRIP Example: 7% 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 7%
- Annual stock appreciation assumes 7% (same as dividend increase rate)
| Year | Invested: | Reinvested Dividends | Total Cost Basis: | Total Value: |
| 1 | $1,101.00 | $11.07 | $1,112.07 | $1,150.42 |
| 2 | $2,301.00 | $53.67 | $2,354.67 | $2,520.01 |
| 3 | $3,501.00 | $130.82 | $3,631.82 | $4,021.32 |
| 4 | $4,701.00 | $245.85 | $4,946.85 | $5,667.01 |
| 5 | $5,901.00 | $402.40 | $6,303.40 | $7,470.98 |
| 6 | $7,101.00 | $604.47 | $7,705.47 | $9,448.44 |
| 7 | $8,301.00 | $856.44 | $9,157.44 | $11,616.09 |
| 8 | $9,501.00 | $1,163.10 | $10,664.10 | $13,992.21 |
| 9 | $10,701.00 | $1,529.71 | $12,230.71 | $16,596.85 |
| 10 | $11,901.00 | $1,962.04 | $13,863.04 | $19,451.99 |
| 11 | $13,101.00 | $2,466.41 | $15,567.41 | $22,581.72 |
| 12 | $14,301.00 | $3,049.74 | $17,350.74 | $26,012.46 |
| 13 | $15,501.00 | $3,719.64 | $19,220.64 | $29,773.14 |
| 14 | $16,701.00 | $4,484.43 | $21,185.43 | $33,895.51 |
| 15 | $17,901.00 | $5,353.23 | $23,254.23 | $38,414.34 |
| 16 | $19,101.00 | $6,336.04 | $25,437.04 | $43,367.77 |
| 17 | $20,301.00 | $7,443.84 | $27,744.84 | $48,797.59 |
| 18 | $21,501.00 | $8,688.64 | $30,189.64 | $54,749.62 |
| 19 | $22,701.00 | $10,083.61 | $32,784.61 | $61,274.09 |
| 20 | $23,901.00 | $11,643.21 | $35,544.21 | $68,426.05 |