Dividend Growth Calculator
This Dividend Growth Calculator projects future dividend income, total dividends paid over a projection period, and an estimated portfolio size when dividends are reinvested. It supports a fixed-growth model with optional reinvestment and a three-point scenario comparison (conservative / base / aggressive).
Results are estimates based on the inputs and the model assumptions stated below. Use the scenario comparison to understand sensitivity to different dividend growth rates and the reinvestment toggle to see the effect of DRIP-style compounding.
Assumes dividends are reinvested immediately to buy additional shares at the provided share price. Dividend per share grows at the indicated annual rate. Annual contributions (if any) are invested at the same share price each year for simplicity.
Inputs
Advanced inputs
Reinvestment options
Results
Projected annual dividend (end of term, reinvested)
$881.59
Estimated total shares
332.2638
Estimated portfolio value (no price appreciation)
$16,613.19
Total dividends generated (after tax)
$5,621.21
| Output | Value | Unit |
|---|---|---|
| Projected annual dividend (end of term, reinvested) | $881.59 | USD |
| Estimated total shares | 332.2638 | — |
| Estimated portfolio value (no price appreciation) | $16,613.19 | USD |
| Total dividends generated (after tax) | $5,621.21 | USD |
Visualization
Methodology
The calculator uses standard growing-annuity and sum-of-growth formulas to estimate dividend streams under a constant annual dividend growth rate. When reinvestment is selected, dividends are approximated as immediately purchasing additional shares at the supplied share price; newly purchased shares are then assumed to receive future dividends that also grow at the same rate.
The scenario comparison applies the same math with three user-specified growth rates to highlight outcome ranges. Annual contributions are modeled as added once per year at the given share price for simplicity.
Key takeaways
Use payout mode to see gross and after-tax cash flows when dividends are taken as income.
Use reinvest mode to estimate compounding effects from automatic reinvestment; results are approximate and assume a static share price for reinvestment calculations.
Run multiple scenarios with different growth rates to understand sensitivity; treat results as illustrative projections, not guarantees.
Further resources
Expert Q&A
Does this model include share price appreciation?
No. Unless you manually adjust the share price or model price growth via scenario inputs, the estimated portfolio value uses the provided share price and does not assume capital appreciation.
How are reinvested dividends modeled?
Reinvested dividends are approximated as immediately buying additional shares at the provided share price. This is an approximation that does not model intra-year price changes or fractional timing effects.
Are taxes included?
You can apply an effective tax rate on dividends which will reduce the reported after-tax total dividends. This does not model tax lot rules, qualified vs ordinary income distinctions, or jurisdictional differences.
Why do results differ between reinvest and payout modes?
When dividends are reinvested they compound by purchasing additional shares that themselves produce dividends in later years; payout mode assumes dividends are taken as cash and do not compound within the portfolio.
How accurate are these projections?
Projections are deterministic outputs of the formulas described and depend entirely on input assumptions (growth rates, share price, tax rate). Real-world returns vary due to market price movement, dividend cuts, taxation changes, and other events.
Sources & citations
- NIST — Risk Management and Measurement Guidance — https://www.nist.gov
- ISO — Management and financial standards information — https://www.iso.org
- IEEE — Guidelines for quantitative model reporting — https://www.ieee.org
- OSHA — Good practice for workplace accuracy and testing (general engineering standards) — https://www.osha.gov