Dividend Growth Rate Calculator: Annualized Dividend Growth
Work out how fast a company has been raising its dividend — the headline measure behind dividend-growth investing, and the figure that turns a 3% yield today into a 6% yield-on-cost down the road.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Annual dividend growth rate | Total dividend growth |
|---|---|---|
| $2 to $3 over 5yr | 8.45% | 50.00% |
| $0.50 to $1.00 over 10yr | 7.18% | 100.00% |
| $1.20 to $1.60 over 4yr | 7.46% | 33.33% |
| $3 to $2.40 over 3yr | -7.17% | -20.00% |
How This Calculator Works
Enter the dividend per share at the start and end of the period, with the years between them. The calculator finds the compound annual growth rate, the steady yearly pace that connects the two payouts.
The Formula
Compound Annual Growth Rate
Start is the beginning value, End is the ending value, n is the number of years
Worked Example
A dividend rising from $2 to $3 per share over 5 years is an annual growth rate of about 8.4%. Total growth is 50%, but the annual figure is the one to compare against past periods, peers, and inflation.
Key Insight
Dividend growth is the second engine of total return — yield is the headline rate, and growth is what raises it on the cost you paid. A 3% yield growing 8% a year doubles your yield on cost in nine years, without you doing anything beyond holding the shares.
Frequently Asked Questions
What is dividend growth rate?
The compound annual rate at which a company has raised its dividend per share. It is the second factor behind total return — yield is the first.
Why does dividend growth matter?
A rising dividend lifts your yield on cost over time. A 3% yield growing 8% a year becomes a 6% yield on cost in about nine years, without any share-price help.
Is total or per-share figures the right input?
Per share is cleanest because it strips out buybacks and issuance. Total dividend dollars work only if the share count was unchanged.
What is a good dividend growth rate?
Mature payers often raise dividends 4% to 8% a year; faster growers run higher but are usually riskier. Beating inflation is the bare minimum to maintain real income.
Can the rate be negative?
Yes. A dividend cut produces a negative growth rate — and is usually a sign of stress. Past growth never guarantees future raises.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 1 independent, dated source.
Methodology & Review
The growth rate is the compound annual rate between the dividend per share at the start and end of the period. The calculator works on whatever currency and per-share figures you enter; total dividend dollars work too, as long as the share count was unchanged.
Written by Ugo Candido · Last updated May 17, 2026.