HomeDividend Growth Calculator 2026

Dividend Growth Calculator 2026

Project how your annual dividend income grows as a company increases its dividend each year. Calculate yield-on-cost, see when your income doubles, and understand why dividend growth rate matters as much as starting yield.

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📈 Dividend Growth & Yield-on-Cost Calculator

No DRIP — pure income growth from annual dividend increases

$
%
%/yr
1 yr40 yrs
Starting Income/yr
$1,800
Year 20 Income/yr
$6,965
Yield on Cost (Yr 20)
13.93%
Total Income Earned
$80,757
Income Doubles In
Year 11
Income Multiple
3.9×
Annual Income Over Time
Year 0Year 20
⚠️ Disclaimer: Projections assume a constant dividend growth rate every year. Actual dividends may be cut, paused, or grown at different rates. Past dividend growth is not guaranteed to continue. This calculator is for educational planning purposes only — not financial advice.

Why Dividend Growth Rate Matters More Than Starting Yield

A common mistake among new income investors is chasing the highest current yield. But a 7% yield that never grows is worth far less over 20 years than a 3% yield growing at 8%/year.

Stock A — High Yield, No Growth
Starting income:7% yield, $7,000/year on $100K
Year 10:$7,000/year (unchanged)
Year 20:$7,000/year (unchanged)
Yield on cost:7.0% yield-on-cost
Stock B — Lower Yield, Growing
Starting income:3% yield, $3,000/year on $100K
Year 10:$5,908/year (+8%/yr growth, ~10 yrs)
Year 20:$11,642/year (155% income increase!)
Yield on cost:11.6% yield-on-cost

After 20 years, Stock B generates 66% more annual income than Stock A — despite starting with a much lower yield. This is the compounding power of dividend growth that the Dividend Aristocrats and Kings demonstrate over multi-decade time horizons.

Quick Reference: Dividend Doubling Time (Rule of 72)

4%/yr
doubles in
18 yrs
5%/yr
doubles in
14.4 yrs
6%/yr
doubles in
12 yrs
7%/yr
doubles in
10.3 yrs
8%/yr
doubles in
9 yrs
10%/yr
doubles in
7.2 yrs
12%/yr
doubles in
6 yrs
15%/yr
doubles in
4.8 yrs
● Updated May 4, 2026
✍️
Created by
Founder & Lead Analyst
🔍
Reviewed for accuracy
DividendFlow Research
Editorial & data team
🏛️
Based on
FMP API + SEC EDGAR
Live data, verified daily
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📚 For educational purposes only. Not financial advice. Data sourced from Financial Modeling Prep (FMP) and SEC EDGAR. Results are estimates — actual returns will vary. Full disclaimer →

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