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.