A company with a pretty high yield may grow
the dividend at a slow rate.
Not exact matches
Equity
dividends in the U.S. market grew
at an annualized real
rate of 0.58 % from 1900 to 2000,
slower than GDP growth.
•
Slow dividend growth
rate at about 2 % per year.
But I think it's reasonable to conclude they can grow their
dividend at that
rate for the next few decades, which is substantially lower than the last couple decades (assuming future growth is
slower).
My one knock about the stocks is that the
dividend growth is relatively
slow at a compound annual growth
rate of about 7.5 % and 5.0 % in the last 10 years and 5 years, respectively.
Top 50 UK rivals claim investment programmes are paying
dividends, although growth
rates at both firms have
slowed
(One reason is life insurance
dividends tend to go up
at a
slower rate than interest
rates.)