Dividend Growth Calculator

Dividend investing compounds along two dimensions at once: the dividend per share grows, and reinvested dividends buy more shares that also receive the growing dividend. Over long periods the interaction between those two produces results that look implausible until the table is laid out year by year.

This projects that forward on assumptions you supply. Everything it produces depends entirely on those assumptions holding for decades, which nothing does - so read the output as a sensitivity analysis rather than a plan.

Result

Value at the end

$545,942

Annual income at the end: $27,169
Monthly income at the end: $2,264
Dividends received in total: $189,806
Total contributed: $170,000
Total gain: $375,942
Shares at the end: 2,491.61
Yield on original cost: 54.34%
Share of the gain from dividends: 50.49%

This tool is for informational and educational purposes only. It is not financial or investment advice, and past performance does not guarantee future results.

This is a projection built entirely from the growth rates you entered. It is arithmetic, not a forecast - no company guarantees a dividend growth rate.

Reinvestment assumes every distribution buys fractional shares immediately at the year-end price, with no tax withheld and no commission.

Year-by-year projection

Year	Shares	Dividend income	Position value	Cumulative dividends
1	577	$1,700	$60,008	$1,700
2	654.69	$2,080	$70,811	$3,780
3	733.29	$2,501	$82,485	$6,281
4	813.02	$2,969	$95,112	$9,250
5	894.14	$3,490	$108,786	$12,740
6	976.9	$4,068	$123,609	$16,808
7	1,061.55	$4,712	$139,693	$21,520
8	1,148.39	$5,427	$157,165	$26,947
9	1,237.7	$6,223	$176,163	$33,170
10	1,329.81	$7,110	$196,844	$40,280

How to use the dividend growth calculator

Enter the starting amount, the share price and the current yield.
Enter your assumed dividend growth and price growth rates.
Choose whether dividends are reinvested and add any annual contribution.
Change one assumption at a time and watch how much the outcome moves.

What people use this for

Seeing what reinvestment adds over a long period compared with taking the income.
Testing how sensitive a projection is to the dividend growth assumption.
Estimating the income a portfolio might produce at a future date.
Comparing the effect of regular contributions against a lump sum alone.

Worked examples

Every figure below is produced by running this calculator against the example inputs, so the numbers always match the tool.

Reinvested over twenty years

$50,000 at a 3.4% yield, 6% dividend growth, 4% price growth, $6,000 added annually.

Value at the end: $545,942
Annual income at the end: $27,169
Dividends received in total: $189,806

The same position taking the income

Dividends withdrawn instead of reinvested.

Value at the end: $295,371
Annual income at the end: $14,699
Yield on original cost: 29.4%

Reinvestment is the larger effect over long periods

Taking the income gives a cash flow now. Reinvesting buys shares that then receive dividends themselves, and those buy more. The difference between the two examples above is not a rounding error.

Which is right depends on whether the income is needed. There is no general answer, and this site does not offer one.

The growth assumption dominates everything

Change the dividend growth rate by two percentage points and the projected income after twenty years moves enormously. That sensitivity is the most useful thing this tool demonstrates.

It also means the output is only as credible as the assumption. A growth rate sustained for two decades is a strong claim about a business, and companies that have raised dividends for many years have also cut them.

What the projection cannot know

Dividend cuts, share price falls, inflation eroding the real value of the income, tax on distributions along the way, and the fact that reinvestment happens at whatever price prevails rather than a smooth one.

The table is a compounding exercise. It is not a forecast and nothing here suggests any of these figures will be achieved.

Methodology and assumptions

What this calculator does, and what it deliberately does not do.

Results are arithmetic on the numbers you enter. Nothing here predicts prices or connects to an exchange, broker or market data feed.
Nothing you type is transmitted or stored - the calculation runs entirely inside your browser.

This tool is for informational and educational purposes only and does not constitute financial or investment advice. Past performance does not guarantee future results.

Nothing on this website is a recommendation to buy, sell or hold any security, currency, derivative or digital asset. No price is predicted and no return is promised or implied.

Trading and investing carry the risk of substantial loss, including the loss of your entire capital. Leveraged products can produce losses that exceed your deposit. Tax treatment depends on your jurisdiction and your circumstances.

Frequently asked questions

What dividend growth rate should I assume?

This site suggests none. A company’s own history is a starting point and not a promise, and the tool exists partly to show how much the answer moves when the assumption does.

Does this account for inflation?

No. The figures are nominal. Real purchasing power after twenty years of inflation is meaningfully lower than the projection suggests.

Is tax included?

No. Dividend tax depends on jurisdiction and account type. Where dividends are taxed before reinvestment, the compounding is slower than shown.

Is this a forecast?

No. It compounds assumptions you entered. Nothing here predicts any company, price or dividend.

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