How to Use the Dividend Growth Rate Calculator
The dividend growth rate (DGR) shows how much a company's dividend has grown on average each year. Enter the dividend from N years ago, the current dividend, and the number of years elapsed, and this tool applies the CAGR (compound annual growth rate) formula to find the annualized rate.
Assuming that growth rate holds steady, you can also see a year-by-year table of projected dividends over your chosen forecast period. This is useful for dividend investors estimating long-term income streams or building a dividend reinvestment projection.
Keep in mind this is a simple projection based on the assumption that past growth repeats exactly. In reality, dividends move with earnings, payout policy changes, and economic cycles, so treat the result as a reference point rather than a guarantee.
Frequently Asked Questions
It uses the CAGR (compound annual growth rate) formula: divide the current dividend by the past dividend, then take the root equal to the number of years elapsed. This gives the average annual growth rate.
Not necessarily. This is a simple projection based on historical data. Actual dividends depend on earnings, payout policy, and economic conditions, so use this as a reference only.
If dividends decreased, the growth rate comes out negative, and projecting it forward shows dividends shrinking each year. If a company has a history of dividend cuts, review growth sustainability separately.