Dividend Reinvestment Plan Calculator

This calculator shows how reinvesting your dividends through a dividend reinvestment plan, or DRP, grows a share investment in New Zealand over time, compared with taking the dividends as cash and relying on share price growth alone. A DRP is offered by many New Zealand companies and lets your dividends automatically buy more shares, usually without brokerage and often at a small discount. The power of it is compounding: those extra shares earn their own dividends, which buy yet more shares, so the holding snowballs in a way that simply spending the dividends never matches. You enter your starting investment, the dividend yield, the expected annual price growth and the number of years, and the calculator projects the value with dividends reinvested, the value from price growth only, and the boost that reinvesting adds. It assumes the dividend yield is reinvested and compounds alongside price growth. Use it to see the long-run value of reinvesting and to decide whether to switch on a DRP or take the income. Bear in mind that reinvested dividends are still taxable income in New Zealand, usually carrying imputation credits, so you must account for the tax even though no cash lands in your account. Returns are not guaranteed. This is general information, not financial advice.

Assumes dividends are reinvested and compound with price growth. Reinvested dividends are still taxable income in New Zealand. Returns are not guaranteed. General information only.