What is dividend growth rate?

Dividend growth rate (DGR) is the compound annual growth rate (CAGR) at which a company's dividend payment has increased over time. It is calculated as: DGR = (End Dividend / Start Dividend)^(1 / Years) - 1. For example, if a company's annual dividend grew from $1.00 to $2.00 over 8 years, the DGR = (2.00/1.00)^(1/8) - 1 = 9.05% per year.

What is a good dividend growth rate?

A dividend growth rate above 5% per year is generally considered good. Rates above 10% per year are elite and relatively rare to sustain over many years. Dividend Aristocrats (25+ consecutive years of increases) typically grow dividends at 5-8% per year. Below 1% per year barely keeps pace with inflation. The best dividend growth stocks combine a meaningful yield (2-4%) with consistent double-digit growth, producing outstanding long-term income compounding.

How does the Gordon Growth Model (DDM) work?

The Gordon Growth Model formula is: Intrinsic Value = D1 / (r - g). Where D1 is the expected dividend in the next 12 months, r is your required rate of return, and g is the long-term sustainable dividend growth rate. The model assumes dividends grow at a constant rate forever. For example: D1 = $3.00, g = 5%, r = 9% → Intrinsic Value = $3.00 / (0.09 - 0.05) = $75.00. The model only works when r > g.

What is the Rule of 72 for dividend growth?

The Rule of 72 estimates how many years it takes for a dividend to double at a given growth rate: Doubling Time = 72 / DGR. At 6% annual dividend growth, the dividend doubles in approximately 12 years (72 ÷ 6). At 9%/yr, it doubles in 8 years. At 12%/yr, it doubles in 6 years. This helps income investors quickly estimate how long before their dividend income reaches a target level.

What is the margin of safety in DDM valuation?

Margin of safety = (Intrinsic Value - Market Price) / Intrinsic Value × 100. It represents how much cheaper the stock is compared to its DDM intrinsic value. A margin of safety above 20-25% is generally considered a comfortable buffer against errors in the growth rate or discount rate assumptions. A negative margin of safety means the stock is overvalued relative to the DDM model.

Is this dividend growth rate calculator free?

Yes. The Dividend Growth Rate Calculator Pro on StockToolHub is completely free with no registration, account, or subscription required. All five tabs are fully accessible.

Dividend Growth Rate Calculator Pro — DGR, DDM Valuation, Projection & History

Dividend Inputs

Starting Annual Dividend

Annual dividend at the start of the period

Ending Annual Dividend

Most recent annual dividend

Number of Years

Years between start and end dividend

Stock Context optional

Current Stock Price

Current EPS

Dividend Growth Rate (CAGR)

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Enter start dividend, end dividend and years

Total Dividend Increase

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Dividend Multiplier

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Current Yield

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Payout Ratio

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Dividend Growth — Past vs Projected

Dividend Payment History

Year	Annual Dividend ($)	YoY Growth	Cumulative Growth

Historical DGR (CAGR)

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Years of Growth

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Best YoY Growth

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Worst YoY Growth

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Total Increase

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Dividend History & Annual Growth Rate

Compare Dividend Growth Rates

Stock / Ticker	Start Dividend ($)	End Dividend ($)	Years	DGR (CAGR)	Total Growth	Category

Highest DGR

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Stocks Compared

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Avg DGR

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Highest DGR

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Lowest DGR

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Dividend Growth Rate Comparison

What each tab calculates

DGR Calculator

Calculate the compound annual growth rate (CAGR) of dividends from any start and end dividend over any number of years. Includes DGR category, Rule of 72 doubling time, yield and payout ratio context, and a past vs projected dividend chart.

DDM Valuation

Find the intrinsic value of a dividend stock using the Gordon Growth Model (Dividend Discount Model). Enter the next dividend, long-term growth rate, and required return. Includes margin of safety, upside/downside, sensitivity table, and a value vs required return chart.

Projection

Project future dividends under up to three growth rate scenarios for any number of years. If you enter share count, also shows projected annual income per scenario. Multi-line chart compares all scenarios visually over the full projection period.

History

Enter a company's dividend payment history year by year. The calculator shows year-over-year growth per year, cumulative growth from the start, historical DGR (CAGR), best and worst year, and a dual-axis chart showing dividend level and annual growth rate.

Compare

Side-by-side DGR comparison for up to 6 stocks. Each row calculates CAGR and total dividend growth automatically. A ranked horizontal bar chart highlights the highest and lowest dividend growers instantly.