Free · Equity investment calculators 📈

Constant Dividend Yield & Reinvestment Growth

Model dividend reinvestment at a constant annual yield and selected frequency, without share-price appreciation or changing payouts.

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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Where results are editable, change one to solve backwards. Lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

Investing 1,000 at a constant 10 percent dividend yield and reinvesting annually for two years produces 1,210, including 210 of modeled growth.

Yield = annual dividend/share price; balance = initial × (1 + yield/frequency)^(frequency × years)

Worked example

Enter these known values and leave the other values blank.

Assumed constant share price
100 USD
Assumed annual dividend per share
10 USD
Starting investment
1000 USD
Modeled investment duration in years
2
Annual dividend yield
10 %
Modeled reinvested balance
1210 USD
Total modeled percentage growth
21 %
Balance growth from reinvestment
210 USD

Assumptions and limitations

  • The share price and dividend yield stay constant, with reinvestment at the selected rate and no taxes, fees, additional deposits or withdrawals. Real dividends and prices can change.
  • Dividend yield is annual dividend per share divided by share price. It is split equally across the modeled reinvestment periods.
  • Weekly and daily choices retain 52.1775 and 365.242 periods per modeled year. These are fixed average conventions, not actual dividend payment dates. Fractional exponents interpolate the model.
  • The result describes compounded income at a constant yield, not a forecast of stock-market total return. Zero years returns the initial balance; a zero dividend produces no modeled growth.

Common questions

Does this include a rising stock price?

No. The share price and payout assumptions remain fixed. The growth shown comes only from modeled reinvestment.

Is the stated yield a guaranteed return?

No. It is an input assumption; distributions, prices and reinvestment opportunities may change.

References

Bookify accepts a zero-year starting balance and requires a nonnegative dividend yield and positive reinvestment frequency.

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