Dividend growth: Measuring a Change in Dividends
Dividend growth compares the new per-share payment with the earlier payment. Keeping the frequency consistent avoids comparing a quarterly dividend with a full-year amount.
Use the Dividend growth Calculator to enter your own figures and compare the result with the worked example below.
Dividend growth formula
Growth (%) = (Current dividend − Prior dividend) ÷ Prior dividend × 100
Worked example
| Item | Example value |
|---|---|
| Current dividend | 2.2 USD |
| Prior dividend | 2 USD |
| Dividend growth | 10% |
These are illustrative inputs, not current prices, rates or recommended targets. Where a currency is shown, keep all comparable money amounts in the same currency; conversion examples identify the two sides separately.
How to interpret the result
Adjust for stock splits and distinguish special dividends from recurring payments. One increase does not establish a sustainable trend.
Related calculations
Method and further reading
The example follows the FinMathly calculator method. For broader background, see Investor.gov: Introduction to investing. The background resource may use jurisdiction-specific terms; it does not replace the assumptions of this calculator.
Featured photograph: Pexels.