Dividend Reinvestment (DRIP)

Compound dividends vs taking them as cash

DRIP Advantage

£107,510

Over 25 years

DRIP Final Value

£192,169

Take-as-cash Final

£84,659

Dividends Taken

£43,849

Net DRIP Gain

£63,661

Stress test

What if the world changes? Toggle a scenario.

simulator

New drip advantage

£107,510

Δ vs baseline

+£0

Real value 1yr out

£104,888

@ 2.5% CPI

Today£107,510

Now£107,510

Current plan. Scenario figures are illustrative — they scale your current calculation rather than re-running every band. Useful for direction, not for filing.

Reinvest vs take cash

DRIP (reinvest)Take as cash

Why DRIP wins: reinvested dividends earn returns on returns — the 3rd-order effect of compounding. Most UK brokers (Trading 212, AJ Bell, HL) auto-reinvest for free.

Watch & learn

YouTube · The Plain Bagel

Why Reinvested Dividends Win

A short, plain-English walkthrough relevant to this page. We curate from trusted UK personal finance creators.

Watch on YouTube

Keep exploring