Dividend Reinvestment Calculator
Project investment growth with and without dividend reinvestment (DRP) over time.
Current dividend yield. ASX average is ~4%
Expected annual share price growth
Extra amount invested each year (on top of DRP)
How It Works
Projects investment growth year by year. Capital growth increases the portfolio value. Dividends are calculated on the current value. With DRP on, dividends are added to the investment (compounding). With DRP off, dividends are paid as cash and only capital growth compounds. Additional annual investments are added each year.
Frequently Asked Questions
What is the average dividend yield on the ASX?
The ASX 200 dividend yield averages around 4-4.5% including franking credits. High-yield stocks (banks, miners) can yield 5-7%+. REITs (A-REITs) yield 4-6%. Growth stocks may yield 1-2% or pay no dividends.
What are franking credits?
Franking credits (imputation credits) represent tax already paid by the company on its profits. A fully franked dividend of $70 carries $30 in franking credits (at 30% company tax rate), making the gross dividend $100. You declare $100 as income and claim $30 as a tax offset.
How much difference does DRP make?
Over 20 years, reinvesting a 4.5% dividend on $20,000 (with 5% capital growth and no additional investment) grows to approximately $93,000 with DRP vs $73,000 without. That is a 27% difference from compounding alone. The gap widens dramatically over longer periods.
Should I use DRP or buy shares myself?
DRP is automatic and usually free of brokerage. However, buying manually lets you choose timing and price, and you can invest in different stocks. Some DRP plans offer a small discount (1-5%) on the share price.
Related Calculators
Compound Interest Calculator
Calculate compound interest with regular contributions, showing growth over time with different compounding frequencies.
Rental Yield Calculator
Calculate gross and net rental yield, plus annual cashflow for an investment property.
Crypto Profit & Loss Calculator
Calculate cryptocurrency profit, ROI, and estimated Australian CGT on your trades.
Capital Gains Tax Calculator
Calculate Australian capital gains tax including the 50% CGT discount for assets held over 12 months.