Dividend reinvestment scenario calculator
Use your own verifiable inputs to see how dividends, taxes, reinvestment, and price assumptions interact over time. No security is preset or recommended.
$48,886 total gain · $48,886 cumulative after-tax dividends
4.06% annualized return · About 1000 starting shares and 1489 ending sharesEstimated from starting principal and ending value, including reinvested dividends and the assumed price path.
At $40,000 annual spending and a 4.00% withdrawal rate, the scenario is about $851,114 short.
This is a generic scenario model with no market-data connection. The site does not preset or recommend any stock. Enter verifiable price, dividend, tax, and growth assumptions, then test a dividend cut or cancellation.
| Year | Portfolio value | Cumulative dividends | Shares |
|---|---|---|---|
| 1 | $104,060 | $4,060 | 1041 |
| 2 | $108,286 | $8,286 | 1083 |
| 3 | $112,683 | $12,683 | 1127 |
| 4 | $117,258 | $17,258 | 1173 |
| 5 | $122,019 | $22,019 | 1220 |
| 6 | $126,973 | $26,973 | 1270 |
| 7 | $132,129 | $32,129 | 1321 |
| 8 | $137,494 | $37,494 | 1375 |
| 9 | $143,077 | $43,077 | 1431 |
| 10 | $148,886 | $48,886 | 1489 |
How this model works
The model divides starting principal by the assumed starting price to estimate initial units. Each payment period calculates units multiplied by annual dividend per unit divided by payment frequency, applies the assumed tax rate, and reinvests the selected share at the modeled current price. Cash that is not reinvested is carried forward. Each year-end result combines unit value and cash.
Test at least three stress cases
First set price growth to zero to isolate dividends and reinvestment. Then cut the annual dividend in half to model an income reduction. Finally set the dividend to zero and use negative price growth to test whether the plan confuses distributions with principal safety. Dividends may be reduced, suspended, or cancelled, and taxes, costs, ex-dividend behavior, and execution prices can materially change the result.
Do not use it to select a stock
The model does not read quotes, filings, balance sheets, cash flow, valuation, or concentration, and it does not compare the risk of different securities. It only applies the assumptions entered. Verify inputs independently, then compare the result with diversification, total return, liquidity, and your capacity for loss. This is general education, not investment, tax, or financial advice.
Further reading
Formula and calculation boundary
For each payment period, shares are multiplied by annual dividend per share divided by payment frequency. Tax is deducted, the selected share is reinvested at the scenario price, and remaining cash is carried forward.
Worked example
The starting values are generic assumptions, not a live quote or a named security. Holding price growth at 0% isolates the effect of the dividend entered and reinvestment; changing price growth mixes dividend income with an assumed capital gain or loss.
Check before acting
- Replace every generic input with a current price and dividend from a source you verified.
- Model dividend cuts, suspension, and withholding tax, not only the current yield.
- Compare total return and concentration risk with a diversified alternative.
Questions people ask
Does a high dividend make a stock safer?
No. Yield can rise because price falls, and a company can reduce or suspend its dividend.
Does the model include ex-dividend price adjustment?
No explicit adjustment is imposed. Price follows the selected growth assumption, so the result is a scenario rather than a forecast.