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The Dividend Snowball.

The whole idea behind buy and hold investing is dull and powerful: every dividend buys a few more shares, those shares pay their own dividends, and the income compounds. Set your assumptions below and watch the snowball roll. It is an estimate, not a promise, and it is not investment advice, but it is a good way to see why patient investors care more about the calendar than the daily ticker.

Starting portfolio $50,000
Added per year $6,000
Starting yield 2.0%
Dividend growth / yr 6.0%
Price growth / yr 4.0%
Years 25
Reinvest dividends (DRIP)
Buy more shares with every payment
Annual income, year 25
$0
about $0 / month
Portfolio value
$0
yield on cost 0%
Dividends collected
$0
total over the period
Income multiple
vs. your first year

The snowball, year by year

Annual dividend income (bars) riding on portfolio value (line).

Show the year-by-year numbers
YearValueAnnual incomeCollectedYield on cost

Track the real thing in Holdwise →

How to read it

Three things drive a dividend snowball: how much you start with and keep adding, how fast the dividends themselves grow, and whether you reinvest them. The single biggest lever most people ignore is that reinvest toggle. Flip it off and on with the same assumptions and watch the gap open up over twenty five years. That gap is the snowball doing its work.

The presets are rough sketches, not recommendations. A three-fund style portfolio leans on lower starting yield with steady growth. A dividend-growth style trades a touch more yield for faster raises. A high-yield style starts with more income but usually grows it more slowly. None is "best," they are just different shapes of the same idea.

These figures are simplified estimates based entirely on the assumptions you enter. Real markets do not grow in a straight line, dividends get cut as well as raised, and taxes and fees are not modeled here. This is an educational tool, not investment advice. Holdwise tracks your actual positions and real ex-dividend dates on your own device.

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