In: Finance
How do you calculate the expected dividend growth rate and future dividends?
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.