Each year, dividends buy additional shares. Those new shares generate dividends the following year, which buy even more shares. As the share price grows, the value per share and the number of shares compound together. DRIP is most efficient in tax-advantaged accounts such as a Roth IRA, where dividends compound at the full rate with no tax drag. See the Roth IRA Contribution Calculator to check your annual contribution limit.
SCHD (Schwab U.S. Dividend Equity ETF) is one of the most commonly modeled ETFs in dividend DRIP calculators. It combines a moderate yield with strong historical dividend growth, making it well-suited for long-term reinvestment. The table below shows suggested inputs and a 20-year projection. Use these values in the calculator above. If you are targeting FIRE with dividend income, the Coast FIRE Calculator shows how much you need invested today to reach your target.
| Parameter | SCHD (2026 est.) | Conservative |
|---|---|---|
| Share Price | ~$85 | $85 |
| Dividend Yield | 3.5-4.0% | 3.5% |
| Annual Price Growth | 7-8% (10yr avg) | 6% |
| Annual Dividend Growth | 8-10% (10yr avg) | 7% |
Stocks and ETFs that pay monthly dividends allow more frequent reinvestment, which slightly increases compounding compared to quarterly payers. This calculator models annual reinvestment; for monthly payers, enter the annualized yield (monthly payment x 12). Monthly compounding adds approximately 0.2-0.4% in additional annual return on top of the base yield. Once your portfolio generates enough dividend income to cover expenses, use the Savings Duration Calculator to see how long that income stream will last.
| Ticker | Name | Approx Yield (2026) | Type |
|---|---|---|---|
| O | Realty Income | ~5.5% | REIT |
| STAG | STAG Industrial | ~4.0% | REIT |
| MAIN | Main Street Capital | ~6.0% | BDC |
| AGNC | AGNC Investment | ~14-16% | Mortgage REIT |
| JEPI | JPMorgan Equity Premium | ~7-9% | Covered Call ETF |
| JEPQ | JPMorgan Nasdaq Premium | ~9-11% | Covered Call ETF |
Approximate yields as of early 2026. High yields from mortgage REITs and covered call ETFs reflect higher risk and/or return-of-capital distributions. Verify before investing.
You own 200 shares at $50 per share, 4% dividend yield, 6% annual price growth, and 3% annual dividend growth, held for 20 years with DRIP. After 20 years, check how long the resulting dividend income stream will last using the Savings Duration Calculator.
Researches and verifies the formulas, methodology, and source data behind each calculator on CalculatorFlux. All tools are built and checked against the cited references before publication.