High Dollar DRIP Example: 12% 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 12%
- Annual stock appreciation assumes 12% (same as dividend increase rate)
| Year | Invested: | Reinvested Dividends |
Total Cost Basis: |
Total Value: |
| 1 | $5,501.00 | $54.42 | $5,555.42 | $5,880.91 |
| 2 | $11,501.00 | $269.80 | $11,770.80 | $13,197.60 |
| 3 | $17,501.00 | $669.77 | $18,170.77 | $21,588.63 |
| 4 | $23,501.00 | $1,281.43 | $24,782.43 | $31,211.75 |
| 5 | $29,501.00 | $2,135.88 | $31,636.88 | $42,247.87 |
| 6 | $35,501.00 | $3,268.75 | $38,769.75 | $54,904.46 |
| 7 | $41,501.00 | $4,720.93 | $46,221.93 | $69,419.47 |
| 8 | $47,501.00 | $6,539.31 | $54,040.31 | $86,065.77 |
| 9 | $53,501.00 | $8,777.66 | $62,278.66 | $105,156.31 |
| 10 | $59,501.00 | $11,497.64 | $70,998.64 | $127,049.99 |
| 11 | $65,501.00 | $14,769.96 | $80,270.96 | $152,158.40 |
| 12 | $71,501.00 | $18,675.75 | $90,176.75 | $180,953.57 |
| 13 | $77,501.00 | $23,308.00 | $100,809.00 | $213,976.84 |
| 14 | $83,501.00 | $28,773.38 | $112,274.38 | $251,849.04 |
| 15 | $89,501.00 | $35,194.24 | $124,695.24 | $295,282.17 |
| 16 | $95,501.00 | $42,710.86 | $138,211.86 | $345,092.74 |
| 17 | $101,501.00 | $51,484.14 | $152,985.14 | $402,217.19 |
| 18 | $107,501.00 | $61,698.61 | $169,199.61 | $467,729.44 |
| 19 | $113,501.00 | $73,565.87 | $187,066.87 | $542,861.09 |
| 20 | $119,501.00 | $87,328.61 | $206,829.61 | $629,024.62 |