Here is the breakdown of how your investment grows over 10 years if you reinvest all dividends:
Assumptions:
- Initial Investment: ₹1,00,000
- Average Dividend Yield: 6% annually
- Stock Growth Rate: 8% annually
- Dividends are reinvested every year.
Summary Table
| Year | Start Investment (₹) | Dividend Earned (₹) | Value with Growth (₹) | Reinvested Total (₹) |
|---|---|---|---|---|
| 1 | 1,00,000 | 6,000 | 1,08,000 | 1,14,000 |
| 2 | 1,14,000 | 6,840 | 1,23,120 | 1,29,960 |
| 3 | 1,29,960 | 7,797.6 | 1,40,356.8 | 1,48,154.4 |
| 4 | 1,48,154.4 | 8,889.26 | 1,60,006.75 | 1,68,896.02 |
| 5 | 1,68,896.02 | 10,133.76 | 1,82,407.7 | 1,92,541.46 |
| 6 | 1,92,541.46 | 11,552.49 | 2,07,944.77 | 2,19,497.26 |
| 7 | 2,19,497.26 | 13,169.84 | 2,37,057.04 | 2,50,226.88 |
| 8 | 2,50,226.88 | 15,013.61 | 2,70,245.03 | 2,85,258.64 |
| 9 | 2,85,258.64 | 17,115.52 | 3,08,079.33 | 3,25,194.85 |
| 10 | 3,25,194.85 | 19,511.69 | 3,51,210.44 | 3,70,722.13 |
Final Insights
- Total Value After 10 Years: ₹3,70,722
- Total Dividends Earned: ₹1,11,023.84
- Annualized Return (with reinvestment): ~14.87%
Visual Chart
The chart above illustrates how your investment grows due to compounding. The reinvested dividends significantly enhance the total returns over time.
If you want a more detailed analysis or an Excel sheet with the data, let me know! 😊
Public Ke Kuch Puchhe Jane Wale Question….
Ye Mere Dividend Ka Profit Ka Ke Mere Amount Aur Dividend Dono Ko Mix Kiya Hua Profit Hai..?
Haan, jo calculation mene ki hai, usme aapke initial investment, dividend profits, aur stock growth tino ka combined impact include hai. Har saal aap jo dividend earn karte hain, use reinvest karke (principal me add karke) overall profit calculate kiya gaya hai.
Breakdown:
- Stock Growth: Har saal aapke principal amount par 8% ka growth lagta hai.
- Dividend Profit: Principal amount ka 6% dividend har saal milta hai.
- Reinvestment: Dividend ko wapas invest karte hain, is wajah se compound growth hoti hai.
Agar aapko sirf dividend ka profit dekhna hai, to alag se calculate karte hain:
Sirf Dividend Ka Profit:
Agar aap ₹1,00,000 invest karein aur uska sirf dividend (6% annually) collect karein bina reinvest kiye, to total profit 10 saal ke liye aise hoga:
Dividend Calculation (Without Reinvestment):
- Annual Dividend = ₹1,00,000 × 6% = ₹6,000
- 10 Saal ka Total Dividend = ₹6,000 × 10 = ₹60,000
To aapko ₹60,000 dividend profit hoga, aur aapka initial investment ₹1,00,000 hi rahega (stock appreciation ka effect nahi hoga).
Mix Amount (Principal + Dividend Reinvestment):
Jisme dividend ko reinvest karte hain, usse compound effect milta hai. Iska final amount ₹3,70,722 hai, jo aapke stock growth aur reinvested dividend ka combined profit hai.