Reinvest some dividends. Keep the rest as cash.
Reinvesting half of each modeled dividend produces $10,302.25 in assets and $302.25 in retained cash after two annual steps: $10,604.50 combined. The starting assets are $10,000 and the chosen annual rate is 3%. Neither input is a current SCHD observation. Cash earns nothing in this worksheet.
This extension of our SCHD dividend calculator separates the reinvested portion from the cash available outside the investment. It is an allocation worksheet, not a claim that a brokerage supports automatic partial DRIP. It does not execute transactions or model real payment dates.
Follow each half through the second year
In the first step, $10,000 × 0.03 gives $300. Allocate $150 to reinvestment and $150 to retained cash. The investment becomes $10,150. The cash balance is separate: adding the full $300 dividend again would double count the reinvested $150.
The second step starts from $10,150, so its modeled dividend is $304.50. Each half is $152.25. Ending assets are $10,150 + $152.25 = $10,302.25; accumulated cash is $150 + $152.25 = $302.25. Adding those two ending balances once gives $10,604.50. The original $10,000 remains inside assets; it is not another cash receipt.
| Year | Dividend | Reinvested | Cash taken | Assets | Cash balance | Total |
|---|---|---|---|---|---|---|
| 1 | 300.00 | 150.000 | 150.000 | 10150.000 | 150.000 | 10300.000 |
| 2 | 304.50000 | 152.250000 | 152.250000 | 10302.250000 | 302.250000 | 10604.500000 |
Download the exact two-step ledger · Download inputs and boundary outputs
Write the split as an equation
Let A be opening investment assets, y the annual modeled rate and f the fraction reinvested. Each step computes dividend D = A × y, reinvestment R = D × f and cash taken C = D × (1 − f). Next assets are A + R. Add C to the separate cash balance. The rate conversion is 3 ÷ 100 = 0.03; the allocation conversion is 50 ÷ 100 = 0.5. Both percentages are chosen inputs.
Our conservation check requires R + C = D on every row. For the second half-reinvestment row, $152.25 + $152.25 = $304.50. Separately, the closed-form investment balance is $10,000 × (1 + 0.03 × 0.5)² = $10,302.25. We checked that expression with exact fractions against the step-by-step decimal calculation, rather than rounding each intermediate row to cents.
Holding the starting assets, rate and horizon fixed, no reinvestment gives $10,000 invested plus $600 cash, totaling $10,600. Full reinvestment gives $10,609 invested and no outside cash. The half allocation lies between them at $10,604.50. It retains $302.25, which is slightly more than half the no-reinvestment cash because the first reinvested half generates additional second-step income.
Change only the allocation
The control below repeats the two-year fixture. Starting assets remain $10,000, annual modeled yield remains 3%, and price growth, additional contributions, fees, tax and cash interest remain zero. A blank allocation is missing data, not permission to assume zero.
Assets $10,302.25; retained cash $302.25; total $10,604.50.
Zero, missing and invalid inputs
At zero modeled yield, $10,000 stays invested and no cash is generated. Starting from zero assets also generates zero, since this model has no contributions. With zero elapsed steps, the initial assets remain untouched. Allocation zero sends every dividend to cash; allocation one reinvests everything. These endpoints test different instructions and must not be collapsed into one generic zero case.
The downloadable test set also rejects a missing fraction, a fraction above one and negative starting assets. Those cases have blank output fields and an explicit error status; blank does not mean a verified zero return. The browser control restricts its editable field to the same allocation range. Its dollar display rounds only after the calculation; the CSV preserves decimal results.
Can the cash be spent instead?
Yes as a different accounting scenario: subtract spending from retained cash. If all $302.25 is spent in this example, ending financial assets are $10,302.25, not $10,604.50. The spent amount is an outflow, not an asset still owned. Our dated bill-payment worksheet examines that separate timing question.
Does this predict SCHD or a broker's service?
No. Annual steps here are synthetic; actual distributions, share prices, execution and eligibility require their own records. A broker may offer different election options, which must be checked with that broker. This page makes no eligibility, tax-treatment or partial-DRIP availability promise.
Test a smaller modeled receipt
The fixed-rate worksheet does not describe a distribution shock. The hypothetical reduction test keeps the allocation fixed and changes only a payment multiplier, with a temporary and a persistent branch. It makes no claim that SCHD has announced a cut.
Source and scope
A public reader question about reinvesting part and keeping part motivates the allocation, not the financial inputs. Investor.gov separates starting money, estimated rate and frequency in its compounding tool. Our equations and test inputs are independent, downloadable model work. The three sampled calculator pages already discuss DRIP and cash; we claim only this worked split, conservation check and boundary fixture as additions within that read sample, not uniqueness across the web.