Five-year DRIP simulation — C$7,000 initial investment with automatic monthly dividend reinvestment. April 2021 → March 2026, plus 12-month forward projection.
Initial Investment
C$7,000
Current NAV (Mar 2026)
C$67.45
5-Yr Total Return (DRIP)
—
Annual total returns (nav, net of MER)
2021
+36.82%
Energy & financials surge
2022
−0.22%
Rate hike year — flat
2023
+8.40%
Steady recovery
2024
+21.42%
Banks & energy re-rate
2025
+30.93%
Iran war premium
5-Yr CAGR
—
Total return incl. divs
Portfolio growth — dual axis view
← % return (left axis)
portfolio value CAD (right axis) →
The DRIP compounding effect
Extra value generated by DRIP
Dividends automatically reinvested each month purchased additional units at prevailing prices, growing your share count from — to — units. Without DRIP, the same price appreciation would have produced only —.
Dividend income collected (cumulative)
—
Total gross dividends generated over 5 years — entirely reinvested into new units. VDY pays monthly, meaning 60 individual reinvestments occurred, each buying fractional units that compound forward. The dividend per unit grew from ~C$0.109/month (2021) to ~C$0.195/month (2026 Q1) — a 79% increase in per-unit income.
Year-by-year DRIP simulation detail
| Period |
Price (year-end) |
Units held |
Div reinvested |
Annual return |
Portfolio value |
vs. no DRIP |
12-month forward projection (Apr 2026 – Mar 2027)
Bear case
—
—
Ceasefire achieved rapidly. Energy war-premium fades, oil falls to US$65–70. Canadian high-dividend stocks retrace partially. Dividend income provides a ~3.2% floor. Rate environment stable.
Base case — most likely
—
—
Iran war lingers through H1 2026. Canadian energy, banks, utilities hold elevated. Dividend growth continues at 5–8% p.a. DRIP compounding accelerates. Total return consistent with 5-year average of ~19% p.a.
Bull case
—
—
Prolonged conflict sustains Brent above $100. TOU, CNQ, ENB, SU (all VDY top holdings) rally hard. Special dividends from energy names boost VDY yield. 2026 mirrors 2021 or 2025 in magnitude.
VDY top holdings — all benefit from Canadian energy/financials tailwinds
This simulation uses historical total return data sourced from Vanguard Canada and public market data. Monthly price paths are interpolated from annual and quarterly anchor points. DRIP calculations assume fractional reinvestment at month-end prices, net of the 0.22% MER. Projected scenarios are illustrative estimates — not guarantees of future performance. Not financial advice. Data as of March 31, 2026.
PERSONAL RESEARCH · 2026 · TSX: VDY