How to calculate a Dividend’s Growth Rate

To calculate a dividend’s growth rate you need to get the dividend history. You can usually get this information from the investor relations page of the company you are researching. Once you get a list of the previous years dividends you can calculate the growth rate very easily.

As an example, if this was the previous years dividends:
2000: $1
2001: $1.10
2002: $1.25

You would say that 2001 had a 10% increase (1.10-1.00=.10, 10/100=10%) and 2002 had a 13.6% increase (1.25-1.10=.15 and 15/110=13.6%).

So average those two out and you get a dividend growth rate of 11.8% over the last two years.


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