💹Simulate compound dividend income growth by current payout, growth rate, and holding period

Simulate compound dividend income growth by current payout, growth rate, and holding period

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How to Use the Dividend Growth Compound Simulator

Simulate future dividend income from a dividend growth investing strategy. Enter current dividend per share, annual growth rate, holding period, and shares held to see projected annual dividends and cumulative income for each year of your holding period.

At 7% annual growth held for 20 years, dividends grow to nearly 3.9× the initial payout. The key to dividend growth investing is selecting companies with consistent track records of dividend increases. Adding DRIP (dividend reinvestment) compounds returns even faster.

Frequently Asked Questions

What is dividend growth investing?

Investing in companies that consistently raise dividends each year. The higher the growth rate and longer the holding period, the higher your Yield on Cost (YOC) becomes relative to your purchase price.

Where can I find a company's dividend growth rate?

Check the company's investor relations page, stock screeners, or Dividend Aristocrats/Kings lists. Use the 5-10 year average dividend growth rate for realistic projections.

Does this include DRIP?

No — this assumes dividends are received as cash. With DRIP, reinvested dividends buy more shares, compounding returns faster and producing higher actual income.