About This Calculator
Project dividend growth over time. This free online calculator provides accurate, instant results to help you make informed investment decisions about dividend-paying stocks.
How It Works
The dividend growth calculator uses the compound growth formula to project how your dividend income will increase over time, assuming a consistent annual growth rate.
Future Dividend = Current Dividend x (1 + Growth Rate)Years
Future Dividend = Projected annual dividend
Growth Rate = Annual dividend growth %
Years = Investment time horizon
What is Dividend Growth Investing?
Dividend growth investing is a strategy that focuses on companies that consistently increase their dividend payments over time. By reinvesting dividends and holding quality dividend growth stocks, investors can build a growing passive income stream.
- Dividend Aristocrats: S&P 500 companies with 25+ years of consecutive dividend increases
- Dividend Kings: Companies with 50+ years of consecutive dividend increases
- Yield on Cost: Your effective dividend yield based on your original purchase price
Tips for Dividend Investors
- Look for companies with sustainable payout ratios (typically under 60%)
- Focus on dividend growth rate, not just current yield
- Diversify across sectors to reduce risk
- Consider DRIP (Dividend Reinvestment Plans) to compound returns
- Review dividend history for consistency and growth trends