By MoneyBees
See what reinvesting your dividends adds up to against taking them as cash, from your own yield, price growth and years. Get the ending value both ways, the cash you would have collected, and the yearly income each path pays at the end.
From year 2.
0 for Singapore shares.
Dividends reinvested
$38,697
income at the end: $1,548 a year
Dividends taken as cash
$28,809
$10,748 of it is the cash collected
Extra from reinvesting
$9,888
on $10,000 put in
Reinvested, each dividend buys more units, and those units pay dividends too. Taken as cash, the holding grows only with the price, and the cash earns nothing here.
After 20 years the reinvested holding pays $1,548 a year in dividends, against $722 if you took the cash.
Leave your email and we'll save this scenario so a MoneyBees adviser can follow up.
Or book a free chat if you'd rather talk it through.
| Year | Reinvested | Taken as cash: holding | Cash collected | Put in |
|---|---|---|---|---|
| 1 | $10,700 | $10,300 | $400 | $10,000 |
| 5 | $14,026 | $11,593 | $2,124 | $10,000 |
| 10 | $19,672 | $13,439 | $4,586 | $10,000 |
| 15 | $27,590 | $15,580 | $7,440 | $10,000 |
| 20 | $38,697 | $18,061 | $10,748 | $10,000 |
Dividends are paid once a year on the value at the start of the year and bought back in at the year-end price. Fees on buying the new units are not counted.
You put S$10,000 into shares that yield 4% and rise 3% a year. Reinvested, the holding grows 7% a year: S$10,700 after one year and S$11,449 after two.
Taken as cash, the shares are worth S$10,609 after two years and you collected S$400 and S$412, S$11,421 in all. The S$28 gap is the dividend on the dividends, and it widens every year.
Individuals pay no tax on dividends from Singapore resident companies under the one-tier system, except dividends from co-operatives. Foreign dividends received by resident individuals are not taxed in Singapore either, unless received through a partnership in Singapore.
Another country may still withhold tax on its dividends before you receive them. Enter that rate above. A yield and growth rate are assumptions, not promises. MoneyBees names no share or fund and does not recommend one.
Figures checked 3 Oct 2026.
Using each dividend to buy more of the same share or fund instead of taking it as cash. The new units pay dividends too, so your income and holding grow faster than the price alone.
It depends on the yield and how long you hold. S$10,000 at a 4% yield and 3% price growth is worth S$11,449 after two years reinvested, against S$11,421 in shares and cash taken out. Over 20 years the gap is far larger.
Individuals pay no tax on dividends from Singapore resident companies under the one-tier system, except dividends from co-operatives. Foreign dividends received by resident individuals are not taxable either, unless received through a partnership in Singapore.
Another country may withhold tax before the dividend reaches you. Singapore does not tax it again, but you keep less. Enter the rate withheld to see the effect on your yield.
A scrip dividend scheme is one way to reinvest: the company pays you new shares instead of cash, sometimes at a discount. You can also reinvest by buying more yourself, which costs brokerage fees.
Reinvesting suits money you will not need for years. Taking cash suits you if you live on the income or want to invest it elsewhere. The calculator shows what each choice is worth; it does not pick one for you.
No. A share's price can fall when its dividend looks at risk, which lifts the yield. Total return is price growth plus dividends, so look at both.
These calculators provide general estimates for educational purposes only and are not personalised financial advice. Results may rely on rates and rules that change over time, so verify against official sources (IRAS, CPF Board, HDB, MAS) or consult a licensed financial adviser before making decisions.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).