A young investor with many years to build an ultimate retirement income stream may prefer to invest in a stock with, say, a 2 % yield and a potential 20 %
per year growth rate instead of a stock with a 3.5 % yield and a 7 % growth rate.
This is roughly equivalent to an investment with a 4 % initial dividend yield with a 7 %
per year growth rate.
I assume that PFF has a zero percent
per year growth rate, which may be overly optimistic.
If the initial dividend amount were 2.5 % with a 10 %
per year growth rate, you would have to wait 7 years to reach a withdrawal rate of 5 % of the original balance (ignoring inflation).
While a 90 % growth rate is unsustainable, even a 20 %
per year growth rate over the next ten years would lead Facebook's earnings to be rise from $ 10 billion per year to $ 62 billion per year, which given a more conservative 20 P / E makes the stock a $ 1.2 trillion company.
Not exact matches
The 0.4
per cent
growth rate for the gross domestic product, the economy's total output of goods and services, was the weakest quarterly performance in almost two
years and followed a much faster 3.1
per cent increase in the third quarter.
I am pleased to announce that our Board of Directors declared a 7 % increase in our quarterly cash dividend to $ 0.77
per share, marking 14 consecutive
years of dividend increases with a compound annual
growth rate of about 10 % over that period.
Although Tampa's 2016 GDP
per capita of $ 46,972 was the second - lowest among the 40 largest metro areas, its GDP
growth rate of 4.2 % that
year was the fifth - highest.
Western Australia has maintained the country's fastest annual population
growth rate of 2.9
per cent, however the
rate of
growth has slowed compared with last
year's figures.
That breaks down to boost of around 0.08 percentage points of added to the GDP
growth rate per year.
CIBC World Markets analyst Robert Sedran lifted the assumed average
growth rate for the sector in fiscal 2018 from seven
per cent to nine
per cent, «turning what was already expected to be a good
year into a better one.»
Consequently, outdoor furniture sales have been expanded by a blistering 10 % to 12 %
per year since the recession ended, compared with a more modest
growth rate of 3 % for conventional niches such as bedrooms.
If the Chinese economy maintains its downward spiral at its current
rate (roughly half a percentage point
per year), the
growth rate for 2017 would be around 6 %.
If the average
rate of
growth the ultra-rich have been enjoying, 11 percent
per year since 2009, is applied to Bill Gates» current net worth, the 61 -
year - old tech titan could become the world's
«But given the financing opportunities that exist for us in the private - equity arena and our
growth rate this
year of 25 %
per month, we were able to win a loan commitment from a bank that would come into effect as soon as we carried out a private placement,» notes CEO Brad Galle.
Denver — like Nashville, a midsize city that has seen brisk population
growth in recent
years — could see its already rapid
rate of rent increases hit nearly 6 percent
per year, triple the overall
rate of inflation.
Singapore's Land Transport Authority (LTA) announced it would cut its permitted vehicle
growth rate from 0.25 %
per year to 0 %, Reuters reports.
The U.S. Commerce Department this
year revised its first - quarter GDP data from negative to positive
growth, and its second - quarter data from 0.6
per cent
growth, at annual
rates, to 0.9
per cent — a rather different economic picture.
That is, would expectations of outsized demand
growth — of, say, 4 percent
per year over the next four
years in inflation - adjusted terms — generate undue inflationary pressures that would require the Federal Reserve to respond by raising interest
rates, essentially killing off any actual
growth that those expectations could generate?
The U.S.
rate hike that the market is 100 percent certain will be delivered this week did not stop Dividend Equity Funds from recording their biggest inflow since the record setting $ 9.4 billion they took in exactly three
years ago, with investors translating recent earnings
per share
growth and expected repatriation of foreign cash piles into bigger dividend payouts.
This
growth rate is the compound annual
growth rate of cash dividends
per common share of stock over the last 5
years.
The latest national accounts are now a bit dated, but they show a high
rate of
growth, over the
year to the September quarter, of just over 4
per cent (Graph 10).
Reducing the
growth rates of these programs by one percentage (from 6 % to 5 % for the CHT and 3 % to 2 % for the CST would save the federal government an incremental $ 425 million
per year.
Nationwide house prices increased strongly for several
years up to late 2003, reaching a peak
growth rate of around 20
per cent in that
year.
That said, the equation fits the cycle pretty well (see Graph 5)[8] and Graph 6 shows the impact on GDP
growth of a 1
per cent increase in the real cash
rate, maintained for two
years.
It is not surprising therefore that
growth of the economy over the latest
year for which data are available was 2.6
per cent, or an annualised
rate of 3
per cent for the latest half -
year.
Business investment has been a major driver of
growth in recent
years, expanding by 18
per cent over the past
year, and at an average annual
rate of 14
per cent over the past three
years.
At a federal - provincial finance ministers» meeting in December 2012, the Finance Minister announced that, starting in 2017 - 18, the
rate of
growth in the Canada Health Transfer (CHT) would be reduced from 6
per cent
per year to grow in line with a three -
year moving average in nominal GDP, with a funding guarantee to grow by at least three
per cent
per year.
That framework's been in place since the early 1990s, we have hit the target over that 20
year period, the average inflation
rate's pretty close to 2.5
per cent, so we regard that as successful by the terms of the definition that we set ourselves and I think that's made a big contribution to economic stability more generally and I don't think it's an accident that that period of fairly low predictable inflation has coincided with pretty good sustained
growth in the economy.
Personal income taxes were up only 2.3
per cent, about half the
rate of
growth expected for the
year as a whole.
In the 2006 Budget, the government promised to reduce the deficit by $ 3 billion
per year; to reduce the federal debt - to - GDP ratio to 25
per cent by 2012 - 13; to eliminate the total government sector debt (which includes the federal, provincial and local governments as well as the Canada and Quebec pension plans) by 2021; and finally, to keep the
growth in program expenses below the
rate of
growth in nominal GDP.
That is down from about 3 3/4
per cent in 2011, which was about the average
rate of
growth over the past 15
years.
That's equivalent to a change in the GDP
growth rate from 2.5 percent percent to 2.44 percent
per year.
• The 2016 increase (14 % payable in December), 2015 increase (20 %), and 5 -
year dividend
growth rate (20 %
per year) are all very good numbers.
Ontario government spending has been increasing faster (by about 3 %
per year) than the combined
rate of population
growth and inflation.
The LendingCrowd
Growth ISA has a target
rate of 6 % *
per year, the LendingCrowd Income ISA has a target
rate of 5.6 % *
per year and
rates for the Self Select ISA start from 5.95 % **.
Where: D = Expected dividend
per share one
year from now k = Required
rate of return for equity investor G =
Growth rate in dividends (in perpetuity)
• 5 -
year dividend
growth rate of just under 20 %
per year.
Finally, the economy is on a hot streak: employers have been adding jobs steadily for a
year, and
growth is running at an annualized
rate in excess of three
per cent.
The graph below plots the median expected 12 - month forward
growth rate expected by analysts, along with the percentage change in actual S&P 500 earnings
per share over the preceding
year.
Growth in household disposable income picked up steadily over the past year, driven by solid employment growth, to be running at just under 6 per cent over the year to the June quarter, the highest rate of increase for almost three
Growth in household disposable income picked up steadily over the past
year, driven by solid employment
growth, to be running at just under 6 per cent over the year to the June quarter, the highest rate of increase for almost three
growth, to be running at just under 6
per cent over the
year to the June quarter, the highest
rate of increase for almost three
years.
After all, assuming a constant price - to - earnings multiple, a doubling in the share price over a five -
year period only requires earnings -
per - share to double, which translates to an annualized
growth rate of 14.9 %.
The recent strength in employment
growth contributed to a further decline in the unemployment
rate to 6 3/4
per cent in the June quarter, compared with almost 7 1/2
per cent a
year ago (Graph 21).
If you invest $ 100,000 to create a portfolio that yields 4 %, with a 6 % dividend
growth rate, and reinvest the dividends for 20
years, the dividend amount you will receive
per year when you decide to withdraw dividends in
year 20 will be $ 24,289.
Looking forward, even if we assume the unicorn
growth rate slows to 20 %
per year over the next five
years, there will be more than 350 of them, with an aggregate market cap of over $ 1 trillion dollars.
The Bank of Canada has cut its policy
rate by a cumulative 75 basis points so far this
year (in three moves) to 2
per cent, against a background of weak GDP
growth and subdued inflation.
Enterprise bargaining outcomes in the early part of the
year also suggested little change in the
rate of wage
growth; new federal enterprise agreements in the March quarter yielded an average annualised increase of 3.4
per cent, unchanged from the previous quarter.
Domestic demand has been held back by weak consumption, which fell by 2.6
per cent over the
year to the December quarter in response to restrictive measures introduced in 2002, aimed at slowing the previously very strong
rates of
growth in consumer credit.
World GDP
growth is therefore expected to accelerate from 3.9
per cent in 2003 to 4.6
per cent in 2004, which would be among the fastest
rates of
growth experienced in the past 30
years.
Philip Morris is expecting an 8 % to 10 % currency neutral earnings -
per - share
growth rate in 2010, around the same
growth rate the company has experienced over the last several
years.