Dividend growth calculator

Project a rising payout over decades — future annual income and yield on cost when the dividend grows every year.

100% free · no account needed DRIP reinvestment built in Dividend growth & monthly contributions Presets for SCHD, VOO, JEPI, JEPQ & more

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Your inputs

Initial investment

Monthly contribution

Dividend yield per year

Dividend growth rate per year

Share price growth per year

Years to grow

yrs

Reinvest dividends (DRIP) Buy more shares with every payout

Dividend tax rate optional

Preset yields are approximate starting points (October 2026) — always adjust the fields to your own holding and assumptions. Results update as you type.

Your projection

Portfolio value

after 20 years

Annual dividend income

in the final year

Total dividends earned

over the full period

Yield on cost

on $0 contributed

Portfolio value Dividends earned per year

Year	Contributed	Dividends	Reinvested	Annual income	Portfolio value

This calculator is an educational estimate, not financial advice. It assumes steady yield, growth and contributions; real dividends can be raised, cut or suspended, and market prices move daily. Read the methodology before relying on any projection.

Why dividend growth changes everything

An income stream that pays you more every year — without you adding a cent — is the quiet engine behind most long-term dividend wealth.

Start with a modest yield

A 3% yield looks unimpressive next to funds advertising 9% or more. But the starting yield is only year one. What matters most is how fast the payment itself grows.

The raises compound

When a company lifts its dividend by 10% a year, your income doubles in about seven years — on the very same shares you already own. No new money, no extra trades.

Yield on cost tells the story

Divide today’s annual income by what you originally invested. That figure — your yield on cost — shows how hard your very first dollars are working for you now.

# worked example
start       : $10,000 invested · 3% yield = $300 a year
growth      : the dividend rises 10% every year
year 10     : income reaches about $707 a year
year 20     : income reaches about $1,835 a year
yield on cost: 3% → about 18.3% — no extra money invested

Funds built on this idea hold companies with long records of raising their payouts. SCHD is the classic example — its holdings are screened for dividend growth, and you can model it in the SCHD dividend calculator. For the full scoreboard view, our yield on cost guide walks through the maths in detail.

Frequently asked questions

Straight answers on growth rates, starting yields and time horizons.

What is a good dividend growth rate?

Sustained growth of 5–10% a year is strong — it doubles your income roughly every 7 to 14 years. Double-digit growth makes headlines, but very few companies keep it up for decades, so treat anything above 10% as a bonus, not a promise.

Is a high starting yield or high growth better?

It depends on when you need the money. A high yield pays more today; growth pays far more later. Over 15–20 years, a growing 3% yield usually overtakes a flat 7% yield — and keeps pulling further away after that.

What is dividend CAGR?

CAGR is the compound annual growth rate — the smooth yearly pace that takes a dividend from its starting value to where it stands today. It is the fairest way to compare two payers with very different histories.

Does dividend growth protect against inflation?

It is one of the few defences that compounds. If your income grows 7% a year while prices rise 3%, your spending power increases every year — without selling a single share.

Related calculators

Keep exploring what a growing income stream can do.