Dividend Growth Rate Calculator
Find a stock's compound annual dividend growth rate.
Enter your values
Enter the starting annual dividend in $/share.
Enter the current annual dividend in $/share.
Enter the years between in years.
Enter the years to project forward in years.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- Dividend growth rate (CAGR)
- 7.25%
- Current annual dividend
- $2.10
- Projected dividend in 5 years
- $2.98
- Total growth over projection
- 41.87%
Quick answer
Dividend growth rate measures how fast a company's per-share dividend has compounded annually, a key input for dividend growth investing.
DGR = (ending dividend / starting dividend)^(1/years) - 1
At a glance
| What it does | Find a stock's compound annual dividend growth rate. |
|---|---|
| Category | Investing |
| Inputs needed | Starting annual dividend, Current annual dividend, Years between, Years to project forward |
| Main output | Dividend growth rate (CAGR) |
| Formula | DGR = (ending dividend / starting dividend)^(1/years) - 1 |
| Cost | Free — no sign-up, no download |
How to use the Dividend Growth Rate Calculator
- 1Enter the dividend per share at the start and end of your lookback period.
- 2Enter the number of years between those two data points.
- 3Project the dividend forward assuming the same growth rate continues.
Inputs explained
- Starting annual dividend($/share)
- Enter the starting annual dividend in $/share.
- Current annual dividend($/share)
- Enter the current annual dividend in $/share.
- Years between(years)
- Enter the years between in years.
- Years to project forward(years)
- Enter the years to project forward in years.
Worked example
Using the values the calculator loads with:
Inputs
- Starting annual dividend1.20 $/share
- Current annual dividend2.10 $/share
- Years between8 years
- Years to project forward5 years
Results
- Dividend growth rate (CAGR)7.25%
- Current annual dividend$2.10
- Projected dividend in 5 years$2.98
- Total growth over projection41.87%
Frequently asked questions
Why does dividend growth matter?
A rising dividend can outpace inflation and signals financial health, making it a core metric for dividend growth investors.
Is past growth a reliable predictor?
No — treat it as a guide, not a guarantee, since payout policy can change with earnings or management decisions.
What do I need to enter into the Dividend Growth Rate Calculator?
Just 4 values: starting annual dividend, current annual dividend, years between, years to project forward. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the Dividend Growth Rate Calculator work out the answer?
Dividend growth rate measures how fast a company's per-share dividend has compounded annually, a key input for dividend growth investing. It applies the formula DGR = (ending dividend / starting dividend)^(1/years) - 1 and shows the working so you can check each step by hand.
Is the Dividend Growth Rate Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.