This figure measures the growth of company dividends over the past five fiscal years. It is the compounded growth rate between the dividends paid out over the most recent trailing 12 months and the dividends paid out over the trailing 12 months six years ago.
Origin
This information is received primarily from the financial documents provided by the company, but can also be taken from The Wall Street Journal.
Benefit
Increasing dividends are usually a signal that management has confidence in the company’s continued earnings power. Dividend growth—especially growth that has been steady from year to year—is a good sign for those investing for income.