Long term investing tool

Dividend Reinvestment Simulator (DRIP)

See how much more your portfolio can grow when you reinvest dividends instead of taking them as cash. Compare DRIP versus non DRIP over 10, 20 or even 40 years.

1. Enter investment assumptions

Initial investment (RM)
Starting amount invested into the stock, ETF or unit trust.
Annual dividend yield (%)
Expected yearly dividend as a percent of portfolio value.
Annual price growth (%)
Expected average capital gain of the share or fund.
Dividend payment frequency
How often dividends are paid and reinvested.
Investment duration (years)
Long horizons show the strongest compounding gap.
Additional monthly contribution (RM, optional)
Extra new money you invest every month on top of your initial amount.
Dividend tax / withholding (%) (optional)
If dividends are taxed, only the net amount can be reinvested or taken as cash.
DRIP scenario reinvests all net dividends to buy more units. Non DRIP scenario takes dividends out as cash while the original units continue to grow.

2. Results and growth comparison

Tip: Enter your initial investment, dividend yield, price growth and time horizon to see how reinvesting dividends changes your final portfolio value.

Final values

Total cash invested RM 0.00
DRIP portfolio value RM 0.00
Non DRIP total (value + cash) RM 0.00
Extra wealth from DRIP RM 0.00

Dividends and units

Total dividends generated (gross) RM 0.00
Dividends taken as cash (non DRIP) RM 0.00
Effective units with DRIP 0.0000
Units without DRIP 0.0000
Portfolio value over time - DRIP vs taking dividends as cash
DRIP - dividends reinvested Non DRIP - dividends taken out
Capital from your own contributions
Growth and dividends generated over the years

This breakdown is based on the DRIP scenario at the end of your chosen investment period.

Disclaimer: This simulator uses constant yearly return and yield assumptions to illustrate long term compounding. Real life markets move in a volatile and unpredictable way, and actual results will differ. This tool is for education only and is not financial or investment advice. Always consult a licensed adviser before investing.

Why dividend reinvestment (DRIP) is so powerful

The basic idea behind DRIP is simple - instead of taking your dividends as cash, you use them to buy more units of the same investment. Over many years, these extra units themselves start to receive dividends and grow in price. This creates a snowball effect that is hard to see in the short term, but becomes very obvious over long horizons.

DRIP versus taking dividends as cash

In a non DRIP scenario, your original units grow with market price, while your dividends are taken out and spent or kept in cash. In a DRIP scenario, every payout is converted into more units, which increases the base that will receive future dividends.

In the simulator, you can see this difference by:

  • Comparing the final portfolio value for DRIP versus non DRIP.
  • Looking at the extra wealth created by reinvesting.
  • Observing how many more units you end up holding under DRIP.

The role of time, yield and growth

Three levers have the biggest impact on the compounding gap:

  • Time horizon - the longer you stay invested, the more cycles of reinvestment and growth you get.
  • Dividend yield - higher yields mean more frequent and larger reinvestments.
  • Price growth - as the share price climbs, earlier reinvested dividends benefit the most.

You can play with the assumptions inside the calculator to see which factors matter most for your situation. Usually, very long time horizons have the strongest effect, even with moderate yields and growth rates.

Blending DRIP with additional contributions

In reality, many investors do not just rely on dividends. They also add fresh money every month or year. The simulator allows you to include a monthly contribution amount to reflect this behaviour.

With DRIP turned on, both your new contributions and the reinvested dividends buy more units. This combination can dramatically accelerate your portfolio growth, especially if you start early.

What this simulator is not showing

For simplicity, the tool assumes smooth yearly growth and a fixed dividend yield. Real life markets move in cycles, dividends can be cut or increased, and prices can be very volatile. Taxes and transaction fees are also simplified to a single dividend tax input.

Because of this, the results should be viewed as a rough illustration of the power of compounding rather than a promise. Use it to build intuition and to test different long term scenarios, then combine it with proper research, diversification and risk management.