Enter the current dividend income, the number of years invested, and the growth rate into the calculator. The calculator will display the dividend income after the number of years entered.
- Dividend Yield Ratio Calculator
- Growth Rate Calculator
- Dividend Payout Ratio Calculator
- Dividends Per Share Calculator
Dividend Growth Formula
The following formula is used to calculate the dividend income from the growth rate.
D = CDI * (1 + r) ^ n
- Where D is the future dividend income
- CDI is the current dividend income
- r is the growth rate
- n is the number of years
To calculate a dividend growth, multiply the current dividend income by 1 plus the growth rate raised to the power of the time in years.
Dividend Growth Definition
Dividend growth is the total growth of a dividend over a time period.
How to calculate dividend growth?
How to calculate dividend income
- First, determine the current dividend income
This will be your total yearly dividend yield from investments.
- Next, determine the yearly growth rate of the investment
If the dividend % of the investment stays the same, then the total dividend yield will increase at the same rate as the underlying investment.
- Determine the total years you plan to invest
This will be the total number of years of investment.
- Calculate the future value
Calculate the future dividend income.
A dividend is a return on an investment paid out by the underlying security on a yearly basis. It’s a guaranteed return on the total investment in an asset, usually an investment fund.
In general, dividends yield anywhere from 1-5% on the high side.