Free Tool
Dividend Growth Calculator
Project how your dividend income compounds over time. Enter a dividend, growth rate, and time horizon to see year-by-year income projections. No signup required.
Dividend growth projector
Project income over time under low / realistic / high growth scenarios.
Dividend income trajectory
Confidence band shows ±3% growth scenarios. The bold line is your projection — the band shows how much things change if reality diverges.
Milestone breakdown
| Year | Div / share | Annual income | Cumulative income |
|---|---|---|---|
| 1 | $1.94 | $194 | $194 |
| 5 | $2.36 | $236 | $1,072 |
| 10 | $3.01 | $301 | $2,440 |
| 15 | $3.84 | $384 | $4,186 |
| 20 | $4.90 | $490 | $6,415 |
How to use this calculator
Enter the current annual dividend per share, the expected dividend growth rate (the percentage by which the company increases its dividend each year), the number of shares you own, and your investment time horizon. The calculator updates instantly as you type and shows both summary metrics and a detailed year-by-year projection.
The power of compounding dividends
Dividend growth investing is a long-term strategy built on one powerful idea: companies that consistently raise their dividends deliver accelerating income over time. A stock paying $2.00 per share today with a 7% annual growth rate will pay $3.93 per share in 10 years — nearly doubling your income without buying a single additional share.
This compounding effect is why many income investors focus on Dividend Aristocrats and Dividend Kings — companies with 25+ and 50+ consecutive years of dividend increases, respectively. Even a modest starting yield of 2-3% can grow into a 5-8% yield on cost over a decade of consistent raises.
Understanding the results
- Year 1 vs Year N Income — Compare what you earn today versus what you could earn at the end of your time horizon, assuming the growth rate holds.
- Total Dividends Over Period — The cumulative income collected across all years, useful for understanding total cash flow from your position.
- Final Annual Dividend per Share — The projected per-share dividend at the end of the period, reflecting all compounded growth.
- Income Growth Multiple — How many times larger your final-year income is compared to year one. A 2.0x multiple means your income doubled.
Tips for realistic projections
Past dividend growth rates are not guaranteed to continue. Use a company's 5- or 10-year dividend growth rate as a starting point, but consider factors like payout ratio, earnings growth, and industry trends. A payout ratio above 70-80% may signal that future growth will slow. Conservative estimates (5-7% growth) tend to produce more reliable projections than aggressive ones.
Dividend Growth Calculator — Frequently Asked Questions
What is dividend growth investing?
Dividend growth investing focuses on companies that reliably raise their dividends year after year, regardless of short-term market noise. The thesis: consistent raises signal durable earnings power, and compounding raises turn a modest starting yield into substantial yield-on-cost over 10–20 years.
What is a realistic dividend growth rate?
For large-cap dividend stocks, 4–8% annualized is a reasonable range. Dividend Aristocrats (25+ years of raises) historically average 6–8%. Faster growers (10%+) often have shorter payment histories or lower starting yields. Aggressive assumptions above 10% for long horizons rarely hold.
What is yield on cost?
Yield on cost is your current annual dividend divided by the price you originally paid — not the current price. It rises over time as dividends grow while your cost basis stays fixed. A 3% starting yield growing at 7% for 15 years produces a ~8% yield on cost.
How does this differ from the DRIP calculator?
This calculator projects how dividend income grows assuming the company raises its payout over time. The DRIP calculator projects how your income grows when you reinvest dividends to buy more shares. Real portfolios combine both effects — dividend raises AND reinvestment. Use both tools together.
Should I factor in stock price growth?
This tool isolates dividend income growth to keep the model simple. Total return (price appreciation + dividends + reinvestment) usually exceeds dividend-only projections. For a full-portfolio simulation including price moves, use the Infnits app with your real holdings.
Related tools
- Dividend Yield Calculator— compute today's income from any holding
- DRIP Calculator — add dividend reinvestment to the compounding equation
- FIRE Calculator — find out when your projected income covers your expenses
- Free Dividend Tracker App — project growth using your real, connected holdings