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Dividend Growth Calculator

Project future income from a dividend stock portfolio based on initial yield and growth rate.

Portfolio value

Current dividend yield

Annual dividend growth rate

How fast dividends increase each year

Stock price growth rate

Time period

years

Reinvest dividends (DRIP)

Dividend Growth Investing

Dividend growth investing focuses on companies that consistently increase their dividend payments over time. As dividends grow, your yield on the original investment (yield on cost) increases, creating a rising income stream.

How to Use

1. Enter your current portfolio value
2. Set your portfolio's current dividend yield
3. Enter expected dividend and stock growth rates
4. Choose whether to reinvest dividends (DRIP)
5. Click Calculate to see your income projection

FAQ

What is yield on cost?

Yield on cost measures your current dividend income against your original investment. If you invested $10,000 at a 3% yield and dividends grew 7% annually for 10 years, your yield on cost would be ~5.9%.

What's a good dividend growth rate?

Dividend aristocrats (companies with 25+ years of increases) average 5-10% annual dividend growth. Higher growth is possible but may not be sustainable long-term.

Should I reinvest dividends?

Reinvesting (DRIP) accelerates portfolio growth through compounding. Take dividends as cash if you need income now, or reinvest to maximize long-term growth.

Calculator Limitations

• Assumes constant dividend growth rate
• Does not account for dividend cuts
• Excludes taxes on dividends
• Does not factor in inflation
• For educational purposes only

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