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About Drips (DRIP Learning Center)

Calculate Long Term Growth

The Moneypaper advocates investing regularly to accumulate assets at a variety of prices over an extended period of years.

The program we provide below will help you calculate the effect of periodic investments compounding over the long term.

Our calculator will retrieve the current price of the company and calculate your cost based on the number of shares you entered and the one-time-only transaction cost, which includes the cost to establish an account for you in the company DRIP.

1.  
Enter the symbol for the company you would like to add to your portfolio

2.  
Enter the number of shares you would like to buy for your initial purchase.

3.  
Enter the dollar amount you anticipate investing on an ongoing basis.

4.

 

Enter the growth rate you anticipate for this company.

To anticipate the rate of growth of your stock, take into consideration that the market as a whole has achieved more than a 10% rate of growth over the long term (The past 70 years). While the rate of growth as a whole has been more than a 10% over the past 70 years, dividends have accounted for 4% of that growth. (For this reason, we suggest that you construct a well-diversified portfolio of dividend paying stocks and accummulate shares of them over the long term.)

5.

 

Enter the number of years you want to invest.

The Moneypaper advocates investing regularly to accumulate assets at a variety of prices over an extended period of years


Strategy: For parents who want to help secure their children’s retirement.

1. Buy one share of stock to start.

2. Enter $25 as the monthly investment.

3. Enter 10% as the average annual rate of growth over the period.

4. Enter 65 as the number of years of compounding.

The only feasible way to achieve 10% results is in stocks. And the only feasible way to invest as little as $25 in stocks is through direct investment plans (DRIPs).