Dividend Snowball Calculator

Calculate the power of dividend reinvestment and compounding returns

Investment Parameters

Initial Investment ($)

Monthly Contribution ($)

Investment Period (Years)

Dividend Yield (%)

Annual Dividend Growth (%)

Annual Stock Price Growth (%)

Reinvest Dividends (DRIP)

Dividend Snowball Results

Enter your parameters to see dividend growth projection

About Dividend Snowball Effect

The dividend snowball effect occurs when you reinvest your dividends to purchase more shares, which then generate their own dividends. Over time, this creates exponential growth through compounding. The key factors are:

Dividend Yield: The annual dividend payment as a percentage of the stock price
Dividend Growth: How much the dividend increases each year
Reinvestment: Using dividends to buy more shares (DRIP)
Time: The longer the timeframe, the more powerful the compounding