"Returns matter a lot. It's our capital." — Abigail Johnson
The accumulation of wealth from investments in stocks is determined by the long run rate of return on investments.
Many investors find companies that pay regular and increasing dividends attractive.
Investors believe that a company with a history of strong dividend growth are on the path of long term profitability and that, part of their profits, would consistently be appropriated to grow their dividend.
However, what is the primary input of the stock valuation method, investors in dividend growth stocks use to determine the best stocks to invest in? It's the dividend growth rate.
What is the dividend growth rate?
The dividend growth rate is the percentage rate of growth that a company's stock's dividend experineces within a given period of time. It's calculated annually.
Examples of companies with dividend growth stocks for the month of February, 2023. - fool.com
