Simulation result: DRIP portfolio: 403.7K PLN, Yield on cost: 13.0%
DRIP vs cash
Dividend reinvestment advantage tracker
Adjust dividend yield, growth, price appreciation and Belka tax to compare DRIP with withdrawing cash. See how yield on cost evolves and what it means for your passive income plan.
Portfolio assumptions
Minimum 5,000 PLN
Portfolio with DRIP
PLN 403,669
Yield on cost: 13.0%
Compounding gap
Reinvesting creates an advantage of PLN 44,973 (12.5%) versus withdrawing net dividends.
Cash withdrawals: PLN 358,696
Net reinvestment path
Final portfolio
PLN 403,669
After reinvesting every payout
Net dividends received
PLN 117,054
Net after Belka tax
Yield on cost
13.0%
Net annual rate vs contributions
Yield-on-cost climbs when dividends stay in the engine
Reinvested payouts buy more shares, raising future income and cushioning price dips.
Wealth: DRIP versus cash
Figures use constant growth assumptions. Stress-test different yields and taxes to reflect your holdings.
- DRIP
- Cash (portfolio plus payouts)
Show chart data
| Year | DRIP | Cash (portfolio plus payouts) |
|---|---|---|
| 1 | PLN 47,349 | PLN 47,301 |
| 2 | PLN 66,186 | PLN 65,943 |
| 3 | PLN 86,714 | PLN 86,045 |
| 4 | PLN 109,166 | PLN 107,737 |
| 5 | PLN 133,817 | PLN 131,161 |
| 6 | PLN 160,988 | PLN 156,473 |
| 7 | PLN 191,056 | PLN 183,842 |
| 8 | PLN 224,466 | PLN 213,455 |
| 9 | PLN 261,745 | PLN 245,514 |
| 10 | PLN 303,517 | PLN 280,241 |
| 11 | PLN 350,528 | PLN 317,880 |
| 12 | PLN 403,669 | PLN 358,696 |
What it means
DRIP income
Net annual income of PLN 26,424 with yield-on-cost at 13.0%.
Cash taps
Total net cash taken out from dividends: PLN 90,355.
Invested capital
Total capital deployed including top-ups: PLN 202,800.
Investor guidancePractical signals to decide when DRIP or cash fits your plan.
- Monitor yield-on-cost: if it rises above your target passive income rate, DRIP is compounding as planned.
- Rising dividend growth can offset slower price appreciation—reinvesting captures that acceleration.
- High tax drag makes reinvestment even more valuable because each payout re-enters before inflation erodes it.
- When you need cash flow, consider partial DRIP: reinvest half, withdraw half to keep compounding alive.
- Stress-test lower dividend growth to check how resilient your plan is under weaker hikes.
Things to consider
Yield-on-cost focus
Track how reinvestment lifts your effective income rate.
Scenario testing
Blend dividend growth, price moves and withdrawals.
Investor guidance
Actions to keep payouts compounding instead of leaking away.