Dividend Growth Rate Calculator
Find a stock's compound annual dividend growth rate.
Enter your values
ⓘ Live results
Results
- 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
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.
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.
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.