This calculator helps you determine the average annual growth rate of dividends paid by a company over a specific period. Understanding dividend growth is crucial for investors looking for income-generating stocks that can consistently increase their payouts.
function calculateDividendGrowthRate() {
var currentDividend = parseFloat(document.getElementById("currentDividend").value);
var previousDividend = parseFloat(document.getElementById("previousDividend").value);
var years = parseInt(document.getElementById("years").value);
var resultDiv = document.getElementById("result");
if (isNaN(currentDividend) || isNaN(previousDividend) || isNaN(years) || years <= 0) {
resultDiv.textContent = "Please enter valid numbers for all fields, and ensure the number of years is positive.";
return;
}
if (previousDividend <= 0) {
resultDiv.textContent = "Previous dividend must be greater than zero.";
return;
}
if (currentDividend <= 0) {
resultDiv.textContent = "Current dividend must be greater than zero.";
return;
}
// Formula for Compound Annual Growth Rate (CAGR)
// CAGR = [(Ending Value / Beginning Value)^(1 / Number of Years)] – 1
var growthRate = Math.pow((currentDividend / previousDividend), (1 / years)) – 1;
var percentageGrowthRate = growthRate * 100;
resultDiv.textContent = "Annual Dividend Growth Rate: " + percentageGrowthRate.toFixed(2) + "%";
}