Dividend Growth Calculator

About this calculator

This calculator projects how dividend income grows over time from a starting payout and a fixed annual growth rate, compounding the increase each year the way the Dividend Growth Model (a variant of the Gordon Growth Model) values a stock based on its expected stream of rising payouts. Even a modest growth rate compounds meaningfully over a long holding period, since each year's raise is calculated on an already-larger base.

Dividend growth investors specifically target companies with long histories of consistent dividend increases — sometimes decades running, as with so-called Dividend Aristocrats — because a rising payout on shares bought years earlier can produce a yield on original cost far higher than the stock's current yield, and provides a growing income stream that helps offset inflation. This calculator takes a starting dividend and an annual growth rate to project future dividend income across the years you specify.