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 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

  1. First, determine the current dividend income

    This will be your total yearly dividend yield from investments.

  2. 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.

  3. Determine the total years you plan to invest

    This will be the total number of years of investment.

  4. Calculate the future value

    Calculate the future dividend income.

FAQ

What is a dividend?

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.

How much do dividends pay?

In general, dividends yield anywhere from 1-5% on the high side.