Dividend Growth Rate

Filed Under » , , ,
Dictionary Says

Definition of 'Dividend Growth Rate'

The annualized percentage rate of growth that a particular stock's dividend undergoes over a period of time. The time period included in the analysis can be of any interval desired, and is calculated by using the least squares method, or by simply taking a simple annualized figure over the time period. 
Investopedia Says

Investopedia explains 'Dividend Growth Rate'

The dividend growth rate is necessary in order to use the dividend discount model, which is a security pricing model that assumes that a stock's price is determined by the estimated future dividends, discounted by the excess of internal growth over the firm's estimated dividend growth rate. 

A history of strong dividend growth could mean that future dividend growth is likely, which can signal long-term profitability for a given company.  

Related Video for 'Dividend Growth Rate'

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Dividend

    1. A ...

  2. Synthetic Dividend

    A type of ...

  3. Dividend Discount Model - DDM

    A procedure for ...

  4. Gordon Growth Model

    A model for ...

  5. Multistage Dividend Discount Model

    An equity ...

  6. Cost Of Capital

    The required ...

  7. Weighted Average Cost Of Capital - WACC

    A calculation of ...

  8. Growth And Income Fund

    A mutual fund or ...

  9. Boom

    A period of time ...

  10. Industry

    A classification ...

Articles Of Interest

  1. The Power Of Dividend Growth

    Dividends may not seem exciting, but they can certainly be lucrative. Learn more here!

  2. Dividend Facts You May Not Know

    Discover the issues that complicate these payouts for investors.

  3. Build A Dividend Portfolio That Grows With You

    Balance risk and return to produce adequate income despite inflation.

  4. How do I find dividend-paying stocks?

  5. Should You Invest Your Entire Portfolio In Stocks?

    It is true that stocks outperform bonds and cash in the long run, but that statistic doesn't tell the whole story.

  6. The Uses And Limits Of Volatility

    Check out how the assumptions of theoretical risk models compare to actual market performance.

  7. Risk Tolerance Only Tells Half The Story

    Just because you're willing to accept a risk, doesn't mean you always should.

  8. 5 Tips For Diversifying Your Portfolio

    A diversified portfolio will protect you in a tough market. Get some solid tips here!

  9. Invest Like A Pro

    By following the strategies of the pros, even a beginner can learn to invest like an expert.

  10. 5 Nobel Prize-Winning Economic Theories You Should Know About

    Here are 5 prize-winning economic theories that you’ll want to be familiar with.
Sponsored links

comments powered by Disqus
Hot Definitions

  1. Love Money

  2. Shark Watcher

  3. Judo Business Strategy

  4. Dogs Of The Dow

  5. Chinese Hedge

  6. X-Mark Signature

Recommended
Loading, please wait...
See More »
Trading Center