Dividend Growth
Calculator
Results
- Total dividend income
- $2,292.78
- Dividend income in final year
- $260.95
Annual dividend income projection
| 1 | 2.0000 | 200.00 | 200.00 |
| 2 | 2.0600 | 206.00 | 406.00 |
| 3 | 2.1218 | 212.18 | 618.18 |
| 4 | 2.1855 | 218.55 | 836.73 |
| 5 | 2.2510 | 225.10 | 1,061.83 |
| 6 | 2.3185 | 231.85 | 1,293.68 |
| 7 | 2.3881 | 238.81 | 1,532.49 |
| 8 | 2.4597 | 245.97 | 1,778.47 |
| 9 | 2.5335 | 253.35 | 2,031.82 |
| 10 | 2.6095 | 260.95 | 2,292.78 |
Formula
D_y = N × D₀ × (1 + g)^(y − 1)- shares
- 100
- dividend
- 2.0000
- growth
- 0.03
- years
- 10
= 2292.78
Note
This projection assumes the dividend and growth rate continue unchanged. Dividends can be reduced or suspended and are not guaranteed.
More in Financial
See all →Frequently asked questions
What does the dividend growth rate represent?+
It is the annualized percentage by which a company's dividend payment has increased over the period you specify, calculated from the first and last dividend amounts, and it is commonly used to project future income from dividend-paying holdings.
How is the projected future dividend calculated?+
The calculator compounds your current dividend forward by the assumed growth rate for the number of years you set, the same way compound interest projects a growing balance, showing what the payment could be if growth stays constant.
Is a high historical dividend growth rate a guarantee of future increases?+
No. Past growth reflects a company's prior decisions and profitability, not a promise. Dividends can be frozen, cut, or grown more slowly if earnings, cash flow, or the payout ratio change, so treat projections as estimates only.
What is the difference between dividend growth and dividend yield?+
Yield is the dividend divided by the current share price, a snapshot of income relative to cost. Growth rate measures how fast that dividend payment itself is rising over time, independent of what happened to the stock price.
Why might a company with a high yield have low or no dividend growth?+
A high yield can result from a falling stock price rather than a generous payout, and companies stretching to maintain a large yield often have little room to keep raising dividends, sometimes signaling financial strain rather than strength.