Accurate Dividend Calculator for Dividend Reinvestment (DRIP)?

Asked 3 years ago

Hi. do any of you have a good accurate Drip Calculator? I have found some online but their calculations seem to be off. Any recommendations? Looking to see where I would be at with certain stock dripped in 20 years approx. Thanks!

Dividend calculator Dividend reinvestment program (drip)Dividend investing

Osasere Okunloye

Thursday, June 24, 2021

Loanlane and track-your-investment calculator can help with reinvestment, you can also check online for others. All you have to do is provide essential data like initial investment value, expected annual rise, number of years, tax rate etc. Note that data and information are based on assumptions and should not be a substitute for professional advice.

Andia Rispah Igobwa

Monday, August 23, 2021

There are three DRIP calculators that I have found: 
Investing.com 
US Dividend Calculator 
Planet Money's How Your Stock Does Tool
Investing.com only calculates reinvested dividends using the share price stated at the purchase date, which is not optimal for long-term investors who may want a return on their investment beyond total shares purchased. 
USDividendCalculator does not appear to calculate fractions of shares, and this may be confusing for some people who don't know how to make these calculations in their heads. In addition, there are too many fields (Stock Capitalization Area, Fields Per Row 2000), so a person would need an advanced degree to do the calculations in this tool. Planet Money's How Your Stock Does Tool does not appear to have been updated since 2016, so it is unlikely that a person will find this website; I suspect that it may be discontinued.
Planet Money employs a methodology based on Efficient Market Hypothesis (EMH), whereby market price incorporates all information. This is, of course, a faulty assumption when applied to individual companies due to company-specific factors such as management performance and stock dilution that can cause volatility in share price. 
In addition, Planet Money's tool does not show the impact on total returns from reinvesting dividends versus taking cash distributions or selling shares (presumably, this would be shown in a graph on Planet Money's website).
Planet Money also does not calculate the value of dividends reinvested at the purchase date. This is problematic because they do not clearly state what price was used for share purchases, nor do they show whether or not these shares were purchased using cash/borrowed funds or some other non-cash instrument.