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Dividend Growth Calculator

Project dividend income forward at a compound growth rate and see the yield on cost it reaches.

About Dividend Growth Calculator

A dividend growing at 7% doubles roughly every ten years, so yield on cost climbs steadily even if the share price does not move. Cumulative dividends are the sum of a geometric series over the period. Dividend growth is what turns a modest starting yield into substantial income over a couple of decades, and it is far more predictable than price appreciation.

Formula

Dividend Growth

Future dividend = current dividend × (1 + growth rate)^years

yield on cost
Growing dividend measured against the original purchase price

Worked example

With the default values below, Dividend Growth Calculator returns Dividend per Share in the Final Year of $8.8289. Change any input above and every figure here is recalculated in your browser.

Inputs used

Current annual dividend per shareminimum 0
3.2
Annual dividend growth rateaccepts 0–100 %
7 %
Years to projectaccepts 1–50 years
15 years
Price paid per shareminimum 0.01
45
Shares heldminimum 0
500

Results

Dividend per Share in the Final Year
$8.8289
Annual Income in the Final Year
$4,414.45
Yield on Cost in the Final Year
19.62%
Total Dividends Received Over the Period
$40,206.44
Years for Income to Double
10.24

Step by step

  1. 1Values used
  2. 2Dividend Growth
  3. 3Dividend per Share in the Final Year= 8.8289
  4. 4Annual Income in the Final Year= 4,414.45
  5. 5Yield on Cost in the Final Year= 19.62
  6. 6Total Dividends Received Over the Period= 40,206.44
  7. 7Years for Income to Double= 10.24

Assumptions and limits

  • The result is derived only from the 5 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Dividend Growth calculated?

Future dividend = current dividend × (1 + growth rate)^years A dividend growing at 7% doubles roughly every ten years, so yield on cost climbs steadily even if the share price does not move. Cumulative dividends are the sum of a geometric series over the period.

Why does Dividend Growth matter?

Dividend growth is what turns a modest starting yield into substantial income over a couple of decades, and it is far more predictable than price appreciation.

What values do I need to enter?

This calculator takes 5 inputs: Current annual dividend per share, Annual dividend growth rate, Years to project, Price paid per share, Shares held. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

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