Its one
year dividend growth rate between 2013 - 2014 was 12,8 % while its 3 years, five years and ten years averages stand respectively at 12,2 %, 9,7 % and 9,6 %.
Not exact matches
Given this, we expect the
rate of
dividend growth to moderate beyond this
year, with increases likely tracking closely to earnings
growth, which figures to average 8 % -10 % annually
between 2018 and 2020.
If the company grows earnings - per - share at its expected 5 % to 8 % a
year growth rate, investors will have total returns of
between 8 % and 11 % a
year from
dividends (3 %) and earnings - per - share
growth (5 % to 8 %).
Or said another way, the value of a stock equals next
year's expect annual
dividend per share divided by the difference
between rate of return the expected
dividend growth rate.
Although they grow their
dividends and earnings each
year, the
rate of
growth is usually rather slow ranging
between 2 % to maybe as high as 6 % or 7 %.