Div Growth Rate vs Growth Rate vs Growth Rate

Div Growth Rate vs Growth Rate vs Growth Rate - Printable Version

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Div Growth Rate vs Growth Rate vs Growth Rate - Robandcindy2 - 08-28-2014

Just a question for clarification:

Which Dividend Growth Rates do you use?

The "Chowder Formula" uses CAGR. Where can you find that? Only place I have found reliable data for CAGR (and it is only good as of Dec 31 previous year) is Robert Allen Schwartz's site: http://www.tessellation.com/dividends/index.html
And this is the historical CAGR (1977-2013)

Setting FastGraphs for 7 years will provide a 5 year average dividend growth rate (This is an average and not CAGR, right?)

Longrundata (http://www.longrundata.com/longrundata/index.php) has a dividend growth calculator for Annualized Dividend Growth Rates (5, 10, 25 years).

Apples to oranges?

Which do you use?

Any other sites provide this info?

Here is an example for JNJ 5 year data(except CAGR):

Schwartz CAGR
7.917%

FastGraph
7.80%

LongRunData
7.61%

I know, all in the ball park. Just curious how picky I really should be.

Cheers!

Rob

RE: Div Growth Rate vs Growth Rate vs Growth Rate - rapidacid - 08-29-2014

I use stockrover.com which has a column / criteria for "Dividend 5 year avg %" that is explained as such:

"The compound average dividend growth for the last 5 years based on the percentage difference between today's forward dividend rate and the actual dividends paid 5 years ago."

[Image: v6qVd0G.jpg]

RE: Div Growth Rate vs Growth Rate vs Growth Rate - EricL - 08-29-2014

(08-28-2014, 10:35 AM)Robandcindy2 Wrote:
I know, all in the ball park. Just curious how picky I really should be.

Cheers!

Rob

I think you are over-analyzing things. Will a 0.2% or 0.3% difference greatly influence your investment decisions?

I think the discrepancy is between CAGR, average growth rate, and the time frame used in calculations. Some sites use the record date, some use the pay date, some use fiscal years, some use calender years.

In the end the important thing to see is the trend and track record.

RE: Div Growth Rate vs Growth Rate vs Growth Rate - Robandcindy2 - 09-01-2014

(08-29-2014, 09:58 AM)EricL Wrote:
(08-28-2014, 10:35 AM)Robandcindy2 Wrote:
I know, all in the ball park. Just curious how picky I really should be.

Cheers!

Rob

I think you are over-analyzing things. Will a 0.2% or 0.3% difference greatly influence your investment decisions?

I think the discrepancy is between CAGR, average growth rate, and the time frame used in calculations. Some sites use the record date, some use the pay date, some use fiscal years, some use calender years.

In the end the important thing to see is the trend and track record.

Over analyze? Who me? Naaahhh, must be thinking of somebody else :-)

Eric you are correct (as always) just wanted to get a better handle on the CAGR and it's relation with the Chowder Formula. That's why I posted those numbers. They seemed "close enough" for me.

Happy Labor Day!

Rob

(08-29-2014, 07:41 AM)rapidacid Wrote: I use stockrover.com which has a column / criteria for "Dividend 5 year avg %" that is explained as such:

"The compound average dividend growth for the last 5 years based on the percentage difference between today's forward dividend rate and the actual dividends paid 5 years ago."

Hey Rapid....

You don't happen to use StockRover on a Mac with Safari do you?

Having the worst time getting it to work. Tech Support at SR is looking into it too.

Thanks!

RE: Div Growth Rate vs Growth Rate vs Growth Rate - Robandcindy2 - 09-01-2014

(08-29-2014, 07:41 AM)rapidacid Wrote: I use stockrover.com which has a column / criteria for "Dividend 5 year avg %" that is explained as such:

"The compound average dividend growth for the last 5 years based on the percentage difference between today's forward dividend rate and the actual dividends paid 5 years ago."

OK...I'm in Stock rover using Firefox.

Wow! Terrific site. Thank you for sharing.