Calculator · Canada & US
Dividend growth calculator
Find a dividend's compound annual growth rate from two payments, the years to double, and a projection of future dividends per share at any growth rate.
Past growth is a clue, not a promise. Check whether earnings grew as fast as the dividend did.
Dividend history
Defaults to the historical CAGR. Change it to test slower or faster growth.
Growth
Historical CAGR
5.96%
Doubling time at that rate
12.0 yrs
Dividend in 15 yrs
$4.31
- Dividend per share at 6% a year
A projection assumes the same growth every year with no cuts. Compare dividend growth with earnings growth over the same period: dividends that outgrow earnings push the payout ratio up.
Estimate for education, not advice. This site does not recommend, rate or rank any security and does not know your full situation. Results depend on your inputs and the simplifications listed under Method. Check tax details with the CRA or IRS, or a qualified professional. Read the disclaimer.
How to use it
- Enter an older annual dividend per share, a recent one and the number of years between them.
- Read the compound annual growth rate (CAGR) and doubling time.
- Adjust the projection rate and horizon to see a steady-growth path from today's dividend.
Method and limits
- CAGR = (recent ÷ older)^(1 ÷ years) − 1. Doubling time = ln 2 ÷ ln(1 + growth).
- Use annual totals (not single payments) and leave out special dividends, or the rate will be distorted.
Frequently asked questions
How many years of history should I use?
Longer windows smooth one-off jumps, but older periods may not reflect today's business. Comparing a 5-year and a 10-year CAGR shows whether growth is speeding up or slowing.
Can dividends grow faster than earnings forever?
No. If the dividend grows faster than earnings, the payout ratio rises until growth has to slow or the dividend is cut. Compare dividend growth with earnings or cash-flow growth over the same years.