Question

In: Finance

How do you calculate the expected dividend growth rate and future dividends?

How do you calculate the expected dividend growth rate and future dividends?

Solutions

Expert Solution

For Expected dividend growth rate : when you buy stocks and expect that the stock price will increase as per the past record, you can calculate the expected growth rate for a longer period of time.Also the dividend growth rate calculate when the annual percentage rate will increase in the dividends paid by the organization.

For future Dividends ; It is to be calculate by using published information share by the organization. Calculate the dividend per share for the coming year by using the dividend growth rate.


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