.dividend-growth-calculator-wrapper {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 0 auto;
line-height: 1.6;
color: #333;
}
.calc-container {
background: #f8f9fa;
border: 1px solid #e9ecef;
border-radius: 8px;
padding: 30px;
margin-bottom: 40px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
.calc-title {
text-align: center;
color: #2c3e50;
margin-bottom: 25px;
font-size: 24px;
font-weight: 700;
}
.form-group {
margin-bottom: 20px;
}
.form-group label {
display: block;
margin-bottom: 8px;
font-weight: 600;
color: #495057;
}
.input-wrapper {
position: relative;
}
.input-wrapper input {
width: 100%;
padding: 12px;
border: 2px solid #ced4da;
border-radius: 6px;
font-size: 16px;
transition: border-color 0.15s ease-in-out;
box-sizing: border-box;
}
.input-wrapper input:focus {
border-color: #28a745;
outline: none;
}
.input-prefix {
position: absolute;
left: 12px;
top: 50%;
transform: translateY(-50%);
color: #6c757d;
}
.input-with-prefix {
padding-left: 30px !important;
}
.btn-calc {
width: 100%;
background-color: #28a745;
color: white;
border: none;
padding: 14px;
font-size: 18px;
font-weight: 600;
border-radius: 6px;
cursor: pointer;
transition: background-color 0.2s;
margin-top: 10px;
}
.btn-calc:hover {
background-color: #218838;
}
.result-box {
margin-top: 25px;
background: #fff;
border-left: 5px solid #28a745;
padding: 20px;
border-radius: 4px;
display: none;
}
.result-row {
display: flex;
justify-content: space-between;
align-items: center;
margin-bottom: 10px;
padding-bottom: 10px;
border-bottom: 1px solid #eee;
}
.result-row:last-child {
border-bottom: none;
margin-bottom: 0;
padding-bottom: 0;
}
.result-label {
font-weight: 500;
color: #666;
}
.result-value {
font-size: 22px;
font-weight: 700;
color: #2c3e50;
}
.main-metric {
color: #28a745;
font-size: 28px;
}
.content-section h2 {
color: #2c3e50;
border-bottom: 2px solid #28a745;
padding-bottom: 10px;
margin-top: 40px;
}
.content-section h3 {
color: #495057;
margin-top: 25px;
}
.content-section p, .content-section li {
font-size: 16px;
margin-bottom: 15px;
}
.example-box {
background-color: #e8f5e9;
padding: 20px;
border-radius: 6px;
border: 1px solid #c3e6cb;
margin: 20px 0;
}
@media (max-width: 600px) {
.result-row {
flex-direction: column;
align-items: flex-start;
}
.result-value {
margin-top: 5px;
}
}
function calculateDividendGrowth() {
var initialDiv = parseFloat(document.getElementById('initialDividend').value);
var finalDiv = parseFloat(document.getElementById('currentDividend').value);
var years = parseFloat(document.getElementById('timePeriod').value);
var resultBox = document.getElementById('resultDisplay');
// Validation
if (isNaN(initialDiv) || isNaN(finalDiv) || isNaN(years)) {
alert("Please enter valid numbers for all fields.");
return;
}
if (years <= 0) {
alert("Number of years must be greater than 0.");
return;
}
if (initialDiv <= 0) {
alert("Initial dividend must be greater than 0 to calculate growth.");
return;
}
// Calculation Logic: CAGR = (End Value / Start Value)^(1/n) – 1
var ratio = finalDiv / initialDiv;
var exponent = 1 / years;
var cagrDecimal = Math.pow(ratio, exponent) – 1;
var cagrPercent = cagrDecimal * 100;
// Total Growth Calculation
var totalGrowthDecimal = (finalDiv – initialDiv) / initialDiv;
var totalGrowthPercent = totalGrowthDecimal * 100;
// Absolute Difference
var absoluteDiff = finalDiv – initialDiv;
// Display Results
document.getElementById('cagrResult').innerHTML = cagrPercent.toFixed(2) + "%";
document.getElementById('totalIncreaseResult').innerHTML = totalGrowthPercent.toFixed(2) + "%";
document.getElementById('absoluteIncreaseResult').innerHTML = "$" + absoluteDiff.toFixed(2);
// Color coding for negative growth
if(cagrPercent < 0) {
document.getElementById('cagrResult').style.color = "#dc3545";
} else {
document.getElementById('cagrResult').style.color = "#28a745";
}
resultBox.style.display = "block";
}
Annual Dividend Growth Rate Calculator
$
$
Annualized Growth Rate (CAGR):
0.00%
Total Percentage Increase:
0.00%
Absolute Dividend Increase:
$0.00
How to Calculate Annual Dividend Growth Rate
Investors seeking reliable passive income often look beyond the current dividend yield and focus on the Annual Dividend Growth Rate. This metric measures the annualized percentage rate at which a company has increased its dividend payouts over a specific period. Consistent dividend growth is often a hallmark of a financially healthy company with increasing free cash flow.
The Dividend Growth Formula (CAGR)
To calculate the annual growth rate accurately over multiple years, we use the Compound Annual Growth Rate (CAGR) formula. A simple average would not account for the compounding effect of increases year over year.
The formula is:
CAGR = ( Dfinal / Dinitial ) (1 / n) – 1
Where:
- Dfinal = The current annual dividend per share.
- Dinitial = The annual dividend per share at the start of the period.
- n = The number of years in the period.
Example Calculation
Let's say you are analyzing a "Dividend Aristocrat" stock. Five years ago, it paid an annual dividend of $2.50 per share. Today, it pays $3.75 per share.
- Divide the final value by the initial value:
$3.75 / $2.50 = 1.50 - Raise the result to the power of one divided by the number of years (1/5 = 0.2):
1.500.2 ≈ 1.08447 - Subtract 1 from the result:
1.08447 – 1 = 0.08447 - Multiply by 100 to get a percentage:
0.08447 × 100 = 8.45%
In this example, the company has grown its dividend by an annualized rate of 8.45% over the last 5 years.
Why Dividend Growth Matters
While a high starting yield is attractive, a high Dividend Growth Rate is crucial for combating inflation. If a company raises its dividend by 8% annually while inflation is 3%, your purchasing power increases significantly over time. This is why many investors prefer companies with lower starting yields but high growth rates (e.g., 10%+) over companies with high yields but stagnant growth.
Interpreting the Results
- Negative Rate: The company has cut its dividend. This is often a red flag regarding the company's financial health.
- 0% – 3% Rate: The dividend is merely keeping pace with historical inflation. This is common in mature utilities or telecoms.
- 5% – 10% Rate: Solid growth. The company is likely expanding earnings and sharing profits with shareholders effectively.
- 10%+ Rate: Aggressive growth. Often found in younger companies or sectors experiencing rapid expansion. Ensure the payout ratio remains sustainable.