Dividend Growth Rate Calculator

✖Previous Year Dividend refers to dividend received by the shareholders in previous fiscal year.ⓘ Previous Year Dividend [D₂]			+10% -10%
✖Current Year Dividend refers to the amount of dividend received by shareholders in a current fiscal year.ⓘ Current Year Dividend [D₁]			+10% -10%

✖The Dividend Growth Rate is the annualized percentage rate of growth that a particular stock's dividend undergoes over a period of time.ⓘ Dividend Growth Rate [DGR]

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Formula

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Dividend Growth Rate

Formula

`"DGR" = ("D"_{"2"}/"D"_{"1"})-1`

Example

`"20"=("10500"/"500")-1`

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Dividend Growth Rate Solution

STEP 0: Pre-Calculation Summary

Formula Used

Dividend Growth Rate = (Previous Year Dividend/Current Year Dividend)-1
DGR = (D₂/D₁)-1
This formula uses 3 Variables

Variables Used

Dividend Growth Rate - The Dividend Growth Rate is the annualized percentage rate of growth that a particular stock's dividend undergoes over a period of time.
Previous Year Dividend - Previous Year Dividend refers to dividend received by the shareholders in previous fiscal year.
Current Year Dividend - Current Year Dividend refers to the amount of dividend received by shareholders in a current fiscal year.

STEP 1: Convert Input(s) to Base Unit

Previous Year Dividend: 10500 --> No Conversion Required
Current Year Dividend: 500 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

DGR = (D₂/D₁)-1 --> (10500/500)-1

Evaluating ... ...

DGR = 20

STEP 3: Convert Result to Output's Unit

20 --> No Conversion Required

FINAL ANSWER

20 <-- Dividend Growth Rate

(Calculation completed in 00.004 seconds)

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Created by Aashna

IGNOU (IGNOU), India

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Go Market Capitalization = (Number of Shares Outstanding of Security*Price of the Security)/(sum(x,0,Number of Securities in the Index,(Number of Shares Outstanding of Security*Price of the Security)))

Laspeyres Price Index

Go Laspeyres Price Index = ((sum(x,1,2,(Price in Final Period*Quantity in Base Period)))/(sum(x,1,2,(Price in Base Period*Quantity in Base Period))))*100

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Go Paasche Price Index = ((sum(x,1,3,(Price in Final Period*Quantity in Final Period)))/(sum(x,1,3,(Price in Base Period*Quantity in Final Period))))*100

Altman's Z Score Model

Go Zeta Value = 1.2*Working Capital+1.4*Retained Earnings+3.3*Earnings Before Interest and Taxes+0.6*Market Value of Equity+1.0*Total Sales

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Justified Forward Price to Earnings Ratio

Go Justified Forward Price to Earnings Ratio = (Dividend/Earnings Per Share)/(Cost of Equity-Growth Rate)

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Go Dividend Coverage Ratio = (Net Income-Preferred Dividend)/Common Dividend

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Equal Weighting

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Dividend Growth Rate Formula

Dividend Growth Rate = (Previous Year Dividend/Current Year Dividend)-1
DGR = (D₂/D₁)-1

What do you mean by Dividend Growth Rate ?

Dividend Growth Rate is a measure used by investors to evaluate how much a company's dividends have grown over a specific period. The dividend growth rate is essential for investors who seek income from their investments, such as dividend stocks, as it helps them assess the sustainability and potential future income growth of their investments. It's also an indicator of a company's financial position and management's confidence in its ability to generate profits and distribute them to shareholders. The dividend growth rate is an important metric, particularly in determining a company’s long-term profitability. Since dividends are distributed from the company’s earnings, one can assess and analyse it's ability to sustain it's profitability by comparing the dividend growth rate over time.

How to Calculate Dividend Growth Rate?

Dividend Growth Rate calculator uses Dividend Growth Rate = (Previous Year Dividend/Current Year Dividend)-1 to calculate the Dividend Growth Rate, Dividend Growth Rate is defined as the percentage growth rate of a company’s dividend achieved during a certain period of time. Dividend Growth Rate is denoted by DGR symbol.

How to calculate Dividend Growth Rate using this online calculator? To use this online calculator for Dividend Growth Rate, enter Previous Year Dividend (D₂) & Current Year Dividend (D₁) and hit the calculate button. Here is how the Dividend Growth Rate calculation can be explained with given input values -> 20 = (10500/500)-1.

FAQ

What is Dividend Growth Rate?

Dividend Growth Rate is defined as the percentage growth rate of a company’s dividend achieved during a certain period of time and is represented as DGR = (D₂/D₁)-1 or Dividend Growth Rate = (Previous Year Dividend/Current Year Dividend)-1. Previous Year Dividend refers to dividend received by the shareholders in previous fiscal year & Current Year Dividend refers to the amount of dividend received by shareholders in a current fiscal year.

How to calculate Dividend Growth Rate?

Dividend Growth Rate is defined as the percentage growth rate of a company’s dividend achieved during a certain period of time is calculated using Dividend Growth Rate = (Previous Year Dividend/Current Year Dividend)-1. To calculate Dividend Growth Rate, you need Previous Year Dividend (D₂) & Current Year Dividend (D₁). With our tool, you need to enter the respective value for Previous Year Dividend & Current Year Dividend and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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