Assumptions
This is a simplified total-return compounding model. Real dividend reinvestment depends on payment timing, taxes, price at reinvestment and dividend changes.
Example
A 10,000 starting value with 5% price return and 3% dividend yield is modeled as an 8% annual total return. Over 10 years, that simple scenario grows to about 21,589 before taxes and fees.
Common mistakes
Do not assume dividend yield and price return stay constant. Dividend cuts, reinvestment price, taxes and fund expenses can materially change real outcomes.
Limitations
The result is not a forecast or investment advice. Use scenario testing and real fund or stock data before relying on it.
Last reviewed: 2026-05-17