# Monthly Compounded Dividend Calculator

You want to know how your **yield on cost** and **income** will grow if you bought **215** shares of a **$4.65** stock for a total investment cost of **$999.75**. Your stock started with a **6.02%** yield and has an annual dividend growth rate of **0%**. You plan to hold this investment for **1** 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.

**With Reinvestment**

Year | Month | Income | Holdings Value |

1 | 1 | $5.02 | $1004.77 |

1 | 2 | $5.04 | $1009.81 |

1 | 3 | $5.07 | $1014.87 |

1 | 4 | $5.09 | $1019.96 |

1 | 5 | $5.12 | $1025.08 |

1 | 6 | $5.14 | $1030.22 |

1 | 7 | $5.17 | $1035.39 |

1 | 8 | $5.19 | $1040.58 |

1 | 9 | $5.22 | $1045.81 |

1 | 10 | $5.25 | $1051.05 |

1 | 11 | $5.27 | $1056.32 |

1 | 12 | $5.30 | $1061.62 |

Year 1 Summary: Total Income (Reinvested): $61.87. Yield on Cost: 6.19% |

You started with **$999.75** and ended up with **$1061.62** for a total gain of **6.19%**. This was over **1 years** so that makes your average annual gain **6.19%**.

**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.