Dividend vs. Growth Stock Return

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u/FinEducation · Joined Oct 2024

Compare dividend stock returns and growth stock investments. Discover which investment strategy offers better performance over time.

Last update Nov 2024
  • Scenario 1: Dividend Stock & Reinvestment
  • Scenario 2: Growth Stock Investment
  • Scenario 3: Dividend Stock Value Only

This chart compares 3 curves: 1) dividends reinvested into growth stock alongside the dividend stock’s growth, 2) growth stock alone, and 3) dividend stock value only, to show dividend impact. Explore how each strategy performs over time.

# Years from Now

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The starting amount you plan to invest in either type of stock.

A =

The percentage return from dividends for the dividend stock.

B =

Expected annual price appreciation of the dividend stock.

C =
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Time Value Assumptions

Heads Up!

If you're using Cost Basis (cb) for calculating capital gains:

Please be aware that very few countries currently use inflation-indexed cost basis. Double-check your local tax rules before publishing.

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How is Cash Value calculated?

Scenario 1 calculates the value of dividends reinvested into growth stock combined with the dividend stock’s price growth, showing how reinvested dividends boost returns.

Decisions / Expectations

(Expressions are evaluated at Year 0 only.)

D =
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Calculations

(Expressions are evaluated at every year.)

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