A stochastic sub-grid model is often used to accurately represent particle dispersion in turbulent flows using large eddy simulations. Models of this type have a free parameter, the dispersion coefficient, which is not universal and is strongly grid-dependent. In the present paper, a dynamic model for the evaluation of the coefficient is proposed and validated in decaying homogeneous isotropic turbulence. The grid dependence of the static coefficient is investigated in a turbulent mixing layer and compared to the dynamic model. The dynamic model accurately predicts dispersion statistics and resolves the grid-dependence. Dispersion statistics of the dynamically calculated constant are more accurate than any static coefficient choice for a number of grid spacings. Furthermore, the dynamic model produces less numerical artefacts than a static model and exhibits smaller sensitivity in the results predicted for different particle relaxation times.