01-13-2016, 01:46 PM
(This post was last modified: 01-13-2016, 01:47 PM by Roadmap2Retire.)
Quote:Thanks for the tips. So when you look at the dividend growth rate, is that something that the company reports or do you calculate it using historical data? I tried to run some projections of portfolio growth with those average growth rates (so, "If I invest xx/year, 3% div, these divs grow at 7-8%/yr) but I'm not sure what that equation needs to look like. Will do some digging.
Its based on historical data. One of the best resources available is Dave Fish's CCC list, where he maintains and updates (monthly) data on dividend growers.
The document called US Dividend Champions is available here: http://www.dripinvesting.org/tools/tools.asp
There are also documents maintained by a couple other folks for Canada and UK dividends (see same page).
There are four dividend growth rate numbers available: 1-yr, 3-yr, 5-yr and 10-yr (columns AL to AO in the doc). Of course you can calculate it yourself with the raw data. So, if for some reason you choose to look at 7-yr dividend growth rate, you will have to calculate yourself (but the raw data is also present there).
1-yr and 3-yr are a bit too small of a window, so use atleast 5-yr dividend growth rate window for your calculations.