Knowledge Base

How do you calculate the 5 Year Growth Rate?

TrackYourDividends calculates a dividend growth rate for each of your individual holdings. Then, we take a weighted average of the growth rates to calculate a growth rate for the portfolio. An individual stock’s growth rate is calculated by taking the current dividend payment divided by the dividend payment 5 years ago. This total growth rate is then divided by 5 to get an annual growth rate for the stock.