What dividend growth rate is good?

A sustained 5–10% per year usually signals an excellent business. Above that, verify the payout isn't being stretched; below inflation, your real income shrinks.

Where do I check a company's dividend history?

On the company's own investor relations site and on the major financial portals, which publish the full payment history and calculated growth rates.

Dividend growth or share buybacks?

They are complementary: buybacks reduce the share count and make per-share dividend increases easier. What matters is total payout discipline — though for income investors, the growing dividend is what pays the bills.

Dividend Growth | Wiki Por Dividendos

Dividend growth measures the pace at which a company increases its shareholder payment over time, usually expressed as a compound annual rate (CAGR) over 5 or 10 years. It is the complementary — and often more important — metric to dividend yield: yield tells you what you collect today; growth, what you will collect a decade from now.

The formula

Dividend CAGR = (final dividend / initial dividend)^(1/years) − 1

If a company paid €1.00 per share ten years ago and pays €2.00 today, its compound annual growth is 7.2% — it doubled the payment in a decade (the rule of 72 in action: 72/7.2 ≈ 10 years).

Why it matters more than the starting yield

Growth turns modest positions into income machines. A stock bought at a 2.5% yield whose dividend grows 10% a year pays 5% on your cost after 7–8 years and 6.5% after 10 — beating the typical frozen high-yielder, with the business's appreciation thrown in. That is the mechanism: growth converts time into income.

Dividend Growth

The formula

Why it matters more than the starting yield

How to evaluate it well

Common mistakes

Frequently asked questions