Dividend Reinvestment Calculator (VND)
A dividend is a slice of company profit paid to shareholders. You can do one of two things with it: take the cash and spend it, or buy more shares — reinvest. Reinvesting raises your share count, so the next dividend payment is larger, which buys even more shares. This is the dividend snowball (often called a DRIP, dividend reinvestment plan): income that generates more income, growing faster the longer it rolls.
Two forces drive the model. The first is dividend yield — the dividend as a percentage of the share price. The second is price growth — the capital appreciation as the company's earnings rise. On a 300.000.000 VND portfolio with 60.000.000 VND added each year, under an illustrative assumption of a 5% yield and 6% annual price growth, reinvesting for 15 years grows the portfolio to roughly 3.736.031.462 VND, with a final-year dividend stream of 164.978.952 VND (about 13.748.246 VND/month). Take the cash instead and the same scenario ends at 2.199.319.143 VND — a gap of 1.536.712.319 VND created purely by letting the dividends compound.
The calculator above lets you set the starting capital, annual top-up, expected yield, price growth, horizon, and a reinvest toggle, then charts the dividend and portfolio value year by year. One caveat: the yield and growth in every example are illustrative assumptions, not forecasts. Real dividends depend on each company's payout policy, and share prices can fall as well as rise. Enter the figures for the portfolio you actually hold.
How the snowball is calculated
The yearly loop
The tool steps through each year in this exact order (so you can reconcile it against the results table):
- Annual dividend: dividend = portfolio_value × yield.
- Reinvest (if enabled): add the whole dividend back into the portfolio.
- Top-up and price growth: new_value = (value + annual_contribution) × (1 + price_growth).
- Add the contribution to total invested capital, used for the ROI figure.
| Symbol | Meaning |
|---|---|
| P | Initial investment |
| C | Annual top-up contribution |
| d | Dividend yield (% per year) |
| g | Share price growth (% per year) |
| t | Number of years |
Reinvesting vs taking the cash
- Take the cash: you receive money each period and your share count is unchanged — the portfolio grows only through price appreciation and your top-ups.
- Reinvest: dividends buy more shares, enlarging the base that pays next period's dividend — this is the snowball. In the 15-year scenario above, flipping the reinvest toggle on alone adds 1.536.712.319 VND.
Tax and costs
In Vietnam, cash dividends paid to individuals are subject to a 5% personal income tax withheld at source; stock dividends are taxed when the shares are sold. This calculator deliberately excludes tax, trading fees and inflation to keep the arithmetic transparent, so its output is a nominal, pre-tax value — discount it accordingly when you plan for real.
What the model leaves out
It assumes a constant yield and price growth for the whole horizon. In reality dividends can be cut, prices can drop, and companies can stop paying. Treat the result as a scenario, not a promise. FiMo also has a Dividend Yield calculator and a Stock Return calculator for deeper analysis.
Worked example: 300.000.000 VND + 60.000.000 VND/year, dividends reinvested
Illustrative assumptions: a constant 5% dividend yield and 6% annual price growth, a 60.000.000 VND top-up at the end of each year, reinvest enabled, no taxes or fees.
| Milestone | Total invested | Portfolio value | Dividend that year |
|---|---|---|---|
| Year 1 | 360.000.000 | 397.500.000 | 15.000.000 |
| Year 5 | 600.000.000 | 910.844.084 | 38.061.280 |
| Year 10 | 900.000.000 | 1.954.136.846 | 84.929.777 |
| Year 15 | 1.200.000.000 | 3.736.031.462 | 164.978.952 |
You pay in 1.200.000.000 VND in total (300.000.000 initial + 60.000.000 × 15 years), and the portfolio reaches 3.736.031.462 VND — a total ROI of about 211.3%. The year-15 dividend stream of 164.978.952 VND works out to roughly 13.748.246 VND/month of passive income.
Comparison: same scenario, but cash out the dividends
| Metric | Reinvest | Take the cash |
|---|---|---|
| Portfolio value after 15 years | 3.736.031.462 | 2.199.319.143 |
| Year-15 dividend | 164.978.952 | 100.741.469 |
| ROI | 211.3% | 83.3% |
The 1.536.712.319 VND gap is the reward for letting dividends keep compounding rather than withdrawing them. If you live off the income, cashing out is reasonable; if you are still accumulating, reinvesting is by far the stronger choice. Re-run the calculator with your portfolio's real yield, and stress-test a lower price-growth assumption too.
Frequently asked questions
What is dividend reinvestment (DRIP)?
Dividend reinvestment (a DRIP, dividend reinvestment plan) means using the dividends you receive to buy more shares instead of spending the cash. A larger share count means a bigger dividend next period, which buys still more shares — the snowball. On 300.000.000 VND with 60.000.000 VND added per year, under an illustrative 5% yield and 6% growth, reinvesting reaches 3.736.031.462 VND after 15 years versus 2.199.319.143 VND if you take the cash — a 1.536.712.319 VND difference.
How does the calculator compute the snowball?
Each year it runs three steps in order: (1) dividend = portfolio value × yield; (2) if reinvest is on, add the dividend back to the portfolio; (3) new value = (portfolio + annual top-up) × (1 + price growth). Verifiable example with 300M, 60M/year, 5%, 6%, 15 years, reinvest on: year 1 dividend is 15.000.000 VND and the portfolio is 397.500.000 VND.
Are dividends taxed in Vietnam?
Yes. Cash dividends paid to individuals are subject to a flat 5% personal income tax, withheld at source when the dividend is paid. Stock dividends are not taxed on receipt but are taxed when you sell the shares. This calculator shows pre-tax figures for transparency, so subtract roughly 5% from the cash-dividend stream when planning for real outcomes.
What is dividend yield?
Dividend yield is the annual dividend divided by the share price, expressed as a percent. A share priced at 100,000 VND paying 4,000 VND/year yields 4%. It is one of the two main inputs to this tool (the other is price growth). FiMo has a dedicated Dividend Yield calculator if you want to derive the yield from a real price and payout.
Should I reinvest dividends or take the cash?
It depends on your phase. While accumulating, reinvesting wins clearly: in the 15-year scenario above it adds 1.536.712.319 VND versus taking the cash. Once you live off the income, cashing out makes sense — the year-15 dividend in the example is 164.978.952 VND, about 13.748.246 VND/month. Toggle the reinvest switch in the calculator to compare both side by side.
Are the yield and growth figures in the examples real?
No. The 5% yield and 6% price growth are illustrative assumptions chosen to make the math easy to verify. Real dividends depend on each company's payout policy and can be cut; share prices can fall as well as rise. Enter the yield and growth for the portfolio you actually track, and stress-test a more pessimistic price-growth assumption.
What is the dividend snowball effect?
It is the loop: dividend → buy more shares → larger dividend next period → buy still more. The longer it runs, the bigger the snowball. In the worked example the dividend stream grows from 15.000.000 VND in year 1 to 164.978.952 VND in year 15 — many times larger, even with a constant assumed yield, purely because the share base keeps growing.