Dividend Calculator

The calculator uses deterministic, fixed-rate models: an annual dividend growth rate is applied to dividend per share, and reinvested dividends are treated as incremental share purchases at the prevailing share price for each projection period.

Key simplifying assumptions are documented so you can judge applicability: share price movement is not modeled explicitly except where an assumption aligns price growth with dividend growth. Transaction costs, taxes, fractional share restrictions, and timing within a year are not included by default unless you adjust inputs.

Security and data handling guidance for the tool references established standards for integrity and transparency. For implementation, follow NIST guidelines for data protection and ISO/IEEE best practices for software quality and documentation. This tool is not audited financial advice; use institutional policies and professional guidance for compliance-critical decisions.

Example 1 (default inputs): 100 shares, $50 price, $2 dividend per share, 5% annual dividend growth, 10 years. With reinvestment this tool estimates both increased share count and higher dividend per share producing a compounded income increase.

Example 2 (target income): To reach $2,000 annual dividend income in 10 years with $2 current dividend and 5% growth, the calculator estimates how many shares are needed and the initial capital required at the current share price.