Dividend Growth Rate Formula

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The Dividend Growth Rate is the annualized percentage rate of growth that a particular stock's dividend undergoes over a period of time. Check FAQs
DGR=(D2D1)-1
DGR - Dividend Growth Rate?D2 - Previous Year Dividend?D1 - Current Year Dividend?

Dividend Growth Rate Example

With values
With units
Only example

Here is how the Dividend Growth Rate equation looks like with Values.

Here is how the Dividend Growth Rate equation looks like with Units.

Here is how the Dividend Growth Rate equation looks like.

22.3333Edit=(10500Edit450Edit)-1
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Dividend Growth Rate Solution

Follow our step by step solution on how to calculate Dividend Growth Rate?

FIRST Step Consider the formula
DGR=(D2D1)-1
Next Step Substitute values of Variables
DGR=(10500450)-1
Next Step Prepare to Evaluate
DGR=(10500450)-1
Next Step Evaluate
DGR=22.3333333333333
LAST Step Rounding Answer
DGR=22.3333

Dividend Growth Rate Formula Elements

Variables
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.
Symbol: DGR
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Previous Year Dividend
Previous Year Dividend refers to dividend received by the shareholders in previous fiscal year.
Symbol: D2
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Current Year Dividend
Current Year Dividend refers to the amount of dividend received by shareholders in a current fiscal year.
Symbol: D1
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.

Other formulas in Equity category

​Go Maximum Leverage Ratio
MLR=1IMR
​Go Margin Call Price
MCP=P0(1-IMR1-MMR)
​Go Marshall-Edgeworth Price Index
MEI=LPI+PPI2
​Go Fisher Price Index
FPI=LPIPPI

How to Evaluate Dividend Growth Rate?

Dividend Growth Rate evaluator uses Dividend Growth Rate = (Previous Year Dividend/Current Year Dividend)-1 to evaluate 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 evaluate Dividend Growth Rate using this online evaluator? To use this online evaluator for Dividend Growth Rate, enter Previous Year Dividend (D2) & Current Year Dividend (D1) and hit the calculate button.

FAQs on Dividend Growth Rate

What is the formula to find Dividend Growth Rate?
The formula of Dividend Growth Rate is expressed as Dividend Growth Rate = (Previous Year Dividend/Current Year Dividend)-1. Here is an example- 22.33333 = (10500/450)-1.
How to calculate Dividend Growth Rate?
With Previous Year Dividend (D2) & Current Year Dividend (D1) we can find Dividend Growth Rate using the formula - Dividend Growth Rate = (Previous Year Dividend/Current Year Dividend)-1.
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