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Dividend Growth Rate Forecast
Christian Peter avatar
Written by Christian Peter
Updated over a year ago

Dividend growth refers to the increase in the number of dividends paid by a company over time. This growth is an important indicator of a company's financial health and its ability to generate profits.

It is also an important metric for investors to assess the potential for future returns, as companies with strong dividend growth in the past are often considered stable, well-established investments.

Using a simple calculation, we provide a forecast of future dividends so you can check what dividends you might expect in the future.

Basically, the calculation is as follows:

Total dividends from last year * (1 + Growth Rate(Optimistic or Pessimistic or Average)) ^ Number of years = Total.

Since this is of course very theoretical, here is an example with real numbers.

Total dividends from last year: 100€

Optimistic yield: 15%

Pessimistic return: 5%

Average return: 10%

Number of years: 10 years

100€ * (1 + 15%) ^ 10 years =404,555€

In case of an optimistic return of 15% per year on the dividends, after 10 years we would receive a dividend of 404,56€ per year.

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