Quote:
Originally Posted by toy71camaro
I want to calculate the "Growth" of a dividend over a certain time frame... Say, for example, in 2007 the dividend was $0.25 and now, in 2012 (5 yrs) its $0.38. What was the dividend growth percent (not looking for the ACTUAL value, but the math to get it. lol).
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If I understand your question, I think you want to see the annual dividend growth percentage for the last 4 years (2007 - 2011). That should be:
(nTH root of (new div / old div) - 1) * 100%
where 'n' is the number of years.
Using the above numbers:
((4th root of (.38 / .25)) - 1) * 100% =
(4th root of (1.52)) - 1 * 100% =
(1.110352 - 1) * 100% =
0.110352 * 100% =
11.0352%
You can use the Scientific version of the Windows calculator to derive the nth root of a number. I don't know how to put the radical symbol in here, hopefully you can figure that out. Maybe this will help.
http://en.wikipedia.org/wiki/Nth_root
Hope that helps!