Tool 140 · Cat-10 · Personal Finance

Dividend Drag vs. Growth Simulator

Compare total return of DRIP vs. pure-growth portfolios after annual dividend tax drag. See after-tax end values, cumulative tax cost, growth advantage, and the breakeven yield where DRIP catches up. Zero API. Zero PII.

Zero PII · Client-side

Last Reviewed · 2026-05-12

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Educational Use Only This tool provides a self-assessment / educational framework for internal planning purposes only. It is not a regulatory audit, legal advice, or a substitute for a formal compliance review by a qualified advisor. Verify all interpretations against the official source text and applicable RTS/ITS/guidance published by the relevant authority.

Module 1 · Portfolio Parameters

Starting Portfolio Value ($)

Annual Total Return (%)

Dividend Yield (%)

Dividend Tax Rate (%)

Capital Gains Rate (%)

Investment Horizon (years)

Dividend Type

2025 LTCG: 0% to $48,350 single/$96,700 MFJ · 15% to $533,400/$600,050 · 20% above. Non-qualified dividends taxed as ordinary income. Sources: IRS Topic 409, updated Feb 2026.

NIIT (3.8% on investment income above $200k single / $250k MFJ)

Dividend Reinvestment

DRIP Strategy

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After-tax end value

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Pure Growth

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After-tax end value

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Cumulative Tax Drag (DRIP)

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Annual dividends taxed

Growth Advantage

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Growth − DRIP after tax

Breakeven Yield

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Above this, DRIP catches up

After-Tax Growth — DRIP (gold) vs. Pure Growth (green)

Cumulative Tax Paid — DRIP Annual Dividend Tax vs. Growth (deferred)

Save & Share Scenario

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