Dividend Aristocrat Income Projection Calculator
Project the growing income stream from a dividend-aristocrat position — where the payout is raised every year — with or without reinvesting.
How it works
Income(t) = invested · yield · (1 + growth)^(t−1) · Yield on cost = income(t) ÷ invested
A dividend aristocrat raises its payout every year, so the income you collect on a fixed cost basis climbs even if you never add a dollar. The dividend grows at the growth rate, and here we assume the share price tracks it so the quoted yield stays roughly constant. Reinvesting compounds the effect: each year’s dividend buys more shares, which themselves pay the rising dividend.
Worked example
$50,000 at a 2.8% starting yield is $1,400 in year one. Growing the dividend 8% a year for 20 years lifts the payout to roughly $6,000, a yield on your original cost of about 12% — before any reinvestment.
Frequently asked questions
What is a dividend aristocrat?
An S&P 500 company that has increased its dividend for at least 25 consecutive years. The label is about the streak of raises, not the size of the yield — many aristocrats yield only 2–3% but grow the payout steadily.
What is yield on cost?
This year’s dividend divided by what you originally paid, not the current price. Because the dividend keeps rising while your cost is fixed, yield on cost climbs over time and can far exceed the yield a new buyer sees today.
Does the share price really track the dividend?
Over long periods a stable payout ratio keeps the quoted yield in a range, so price and dividend tend to grow together. This projection assumes that; a single year can diverge sharply, so treat the ending value as illustrative.
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Educational estimate, not investment or tax advice.