Monthly Compounded Dividend Calculator
You want to know how your yield on cost and income will grow if you bought 100 shares of a $10 stock for a total investment cost of $1000. Your stock started with a 6% yield and has an annual dividend growth rate of 7%. You plan to hold this investment for 10 years and reinvest the dividends.
This will be compounded monthly assuming your stock's yield and yield growth are spaced evenly over the course of a year.
| Year | Month | Income | Holdings Value |
| 1 | 1 | $5.00 | $1005.00 |
| 1 | 2 | $5.05 | $1010.05 |
| 1 | 3 | $5.11 | $1015.16 |
| 1 | 4 | $5.17 | $1020.33 |
| 1 | 5 | $5.22 | $1025.55 |
| 1 | 6 | $5.28 | $1030.83 |
| 1 | 7 | $5.34 | $1036.17 |
| 1 | 8 | $5.40 | $1041.56 |
| 1 | 9 | $5.46 | $1047.02 |
| 1 | 10 | $5.52 | $1052.54 |
| 1 | 11 | $5.58 | $1058.11 |
| 1 | 12 | $5.64 | $1063.75 |
| Year 1 Summary: Total Income (Reinvested): $63.75. Yield on Cost: 6.38% | |||
| Year | Month | Income | Holdings Value |
| 2 | 13 | $5.70 | $1069.46 |
| 2 | 14 | $5.77 | $1075.22 |
| 2 | 15 | $5.83 | $1081.06 |
| 2 | 16 | $5.90 | $1086.95 |
| 2 | 17 | $5.96 | $1092.92 |
| 2 | 18 | $6.03 | $1098.95 |
| 2 | 19 | $6.10 | $1105.05 |
| 2 | 20 | $6.17 | $1111.22 |
| 2 | 21 | $6.24 | $1117.47 |
| 2 | 22 | $6.31 | $1123.78 |
| 2 | 23 | $6.39 | $1130.16 |
| 2 | 24 | $6.46 | $1136.62 |
| Year 2 Summary: Total Income (Reinvested): $72.87. Yield on Cost: 7.29% | |||
| Year | Month | Income | Holdings Value |
| 3 | 25 | $6.53 | $1143.16 |
| 3 | 26 | $6.61 | $1149.77 |
| 3 | 27 | $6.69 | $1156.46 |
| 3 | 28 | $6.77 | $1163.22 |
| 3 | 29 | $6.84 | $1170.07 |
| 3 | 30 | $6.93 | $1176.99 |
| 3 | 31 | $7.01 | $1184.00 |
| 3 | 32 | $7.09 | $1191.09 |
| 3 | 33 | $7.17 | $1198.26 |
| 3 | 34 | $7.26 | $1205.52 |
| 3 | 35 | $7.35 | $1212.87 |
| 3 | 36 | $7.43 | $1220.30 |
| Year 3 Summary: Total Income (Reinvested): $83.68. Yield on Cost: 8.37% | |||
| Year | Month | Income | Holdings Value |
| 4 | 37 | $7.52 | $1227.82 |
| 4 | 38 | $7.61 | $1235.44 |
| 4 | 39 | $7.71 | $1243.14 |
| 4 | 40 | $7.80 | $1250.94 |
| 4 | 41 | $7.89 | $1258.83 |
| 4 | 42 | $7.99 | $1266.82 |
| 4 | 43 | $8.09 | $1274.91 |
| 4 | 44 | $8.19 | $1283.09 |
| 4 | 45 | $8.29 | $1291.38 |
| 4 | 46 | $8.39 | $1299.77 |
| 4 | 47 | $8.49 | $1308.26 |
| 4 | 48 | $8.60 | $1316.86 |
| Year 4 Summary: Total Income (Reinvested): $96.56. Yield on Cost: 9.66% | |||
| Year | Month | Income | Holdings Value |
| 5 | 49 | $8.70 | $1325.57 |
| 5 | 50 | $8.81 | $1334.38 |
| 5 | 51 | $8.92 | $1343.30 |
| 5 | 52 | $9.04 | $1352.34 |
| 5 | 53 | $9.15 | $1361.49 |
| 5 | 54 | $9.27 | $1370.75 |
| 5 | 55 | $9.38 | $1380.14 |
| 5 | 56 | $9.50 | $1389.64 |
| 5 | 57 | $9.62 | $1399.26 |
| 5 | 58 | $9.75 | $1409.01 |
| 5 | 59 | $9.87 | $1418.88 |
| 5 | 60 | $10.00 | $1428.88 |
| Year 5 Summary: Total Income (Reinvested): $112.02. Yield on Cost: 11.20% | |||
| Year | Month | Income | Holdings Value |
| 6 | 61 | $10.13 | $1439.01 |
| 6 | 62 | $10.26 | $1449.27 |
| 6 | 63 | $10.39 | $1459.66 |
| 6 | 64 | $10.53 | $1470.19 |
| 6 | 65 | $10.67 | $1480.85 |
| 6 | 66 | $10.81 | $1491.66 |
| 6 | 67 | $10.95 | $1502.61 |
| 6 | 68 | $11.09 | $1513.70 |
| 6 | 69 | $11.24 | $1524.94 |
| 6 | 70 | $11.39 | $1536.33 |
| 6 | 71 | $11.54 | $1547.87 |
| 6 | 72 | $11.70 | $1559.57 |
| Year 6 Summary: Total Income (Reinvested): $130.69. Yield on Cost: 13.07% | |||
| Year | Month | Income | Holdings Value |
| 7 | 73 | $11.85 | $1571.42 |
| 7 | 74 | $12.01 | $1583.44 |
| 7 | 75 | $12.18 | $1595.61 |
| 7 | 76 | $12.34 | $1607.95 |
| 7 | 77 | $12.51 | $1620.46 |
| 7 | 78 | $12.68 | $1633.14 |
| 7 | 79 | $12.85 | $1646.00 |
| 7 | 80 | $13.03 | $1659.03 |
| 7 | 81 | $13.21 | $1672.24 |
| 7 | 82 | $13.39 | $1685.63 |
| 7 | 83 | $13.58 | $1699.21 |
| 7 | 84 | $13.77 | $1712.98 |
| Year 7 Summary: Total Income (Reinvested): $153.41. Yield on Cost: 15.34% | |||
| Year | Month | Income | Holdings Value |
| 8 | 85 | $13.96 | $1726.94 |
| 8 | 86 | $14.16 | $1741.09 |
| 8 | 87 | $14.36 | $1755.45 |
| 8 | 88 | $14.56 | $1770.01 |
| 8 | 89 | $14.77 | $1784.77 |
| 8 | 90 | $14.98 | $1799.75 |
| 8 | 91 | $15.19 | $1814.94 |
| 8 | 92 | $15.41 | $1830.34 |
| 8 | 93 | $15.63 | $1845.97 |
| 8 | 94 | $15.85 | $1861.82 |
| 8 | 95 | $16.08 | $1877.91 |
| 8 | 96 | $16.32 | $1894.22 |
| Year 8 Summary: Total Income (Reinvested): $181.25. Yield on Cost: 18.12% | |||
| Year | Month | Income | Holdings Value |
| 9 | 97 | $16.55 | $1910.78 |
| 9 | 98 | $16.80 | $1927.57 |
| 9 | 99 | $17.04 | $1944.62 |
| 9 | 100 | $17.29 | $1961.91 |
| 9 | 101 | $17.55 | $1979.46 |
| 9 | 102 | $17.81 | $1997.27 |
| 9 | 103 | $18.07 | $2015.34 |
| 9 | 104 | $18.34 | $2033.69 |
| 9 | 105 | $18.62 | $2052.31 |
| 9 | 106 | $18.90 | $2071.20 |
| 9 | 107 | $19.18 | $2090.39 |
| 9 | 108 | $19.48 | $2109.86 |
| Year 9 Summary: Total Income (Reinvested): $215.64. Yield on Cost: 21.56% | |||
| Year | Month | Income | Holdings Value |
| 10 | 109 | $19.77 | $2129.64 |
| 10 | 110 | $20.07 | $2149.71 |
| 10 | 111 | $20.38 | $2170.09 |
| 10 | 112 | $20.69 | $2190.78 |
| 10 | 113 | $21.01 | $2211.80 |
| 10 | 114 | $21.34 | $2233.13 |
| 10 | 115 | $21.67 | $2254.80 |
| 10 | 116 | $22.01 | $2276.81 |
| 10 | 117 | $22.35 | $2299.16 |
| 10 | 118 | $22.70 | $2321.87 |
| 10 | 119 | $23.06 | $2344.93 |
| 10 | 120 | $23.43 | $2368.35 |
| Year 10 Summary: Total Income (Reinvested): $258.49. Yield on Cost: 25.85% | |||
You started with $1000.00 and ended up with $2368.35 for a total gain of 136.84%. This was over 10 years so that makes your average annual gain 13.68%.
Dividend Reinvestment is where you reinvest your dividends in the same stock that issues the dividend originally, then the next time the dividend is issued you have more shares, so your dividend is higher, and you reinvest more, thus gaining more shares. This is called compounding, and can make you very wealthy in the long term. The more frequent the distributions, the more frequent the compounding, the more money you will make. This calculator is a monthly compounded dividend calculator it is our "fastest" calculator. Faster than both our Annually Compounded Dividend Calculator and our Quarterly Compounded Dividend Calculator. When using this calculator you will notice the significant advantage a more frequent dividend schedule gives to your investment. Over many years it can increase your returns by double digit percentages. As such, when evaluating investment opportunities, it may be worthwhile to accept a lower yield on a stock if that stock issues dividends more frequently and you are engaged in DRIP investing.
