---
title: "Definition of Div Growth"
url: https://signalscreener.fr/definition/dividend-growth/
markdown_url: https://signalscreener.fr/definition/dividend-growth.md
description: "The annualized percentage growth in dividends paid per share over a period, typically 5 years."
type: glossary-definition
site: Signal Screener
language: en
keywords:
  - "Div Growth"
  - "Dividend Growth Rate"
translations:
  de: https://signalscreener.fr/de/definition/dividend-growth.md
  es: https://signalscreener.fr/es/definition/dividend-growth.md
  fr: https://signalscreener.fr/fr/definition/dividend-growth.md
---

# Dividend Growth Rate

## What is Div Growth?

The annualized percentage growth in dividends paid per share over a period, typically 5 years.

## Think of it like this

Like getting annual raises at your job - a company that consistently raises dividends shows commitment to shareholders.

## Formula

```
Dividend Growth = (Current Dividend ÷ Past Dividend)^(1/Years) - 1
```

- **Current Dividend**: Most recent annual dividend per share
- **Past Dividend**: Dividend from 5 years ago
- **CAGR**: Compound Annual Growth Rate

## Why it matters

- Shows company's commitment to shareholders
- Growing dividends often signal healthy business
- Dividend Aristocrats have 25+ years of increases
- Helps maintain purchasing power against inflation

## What's a good value?

| Range | Rating | What it means |
|---|---|---|
| < 3% | Slow | Below inflation, losing purchasing power |
| 3-7% | Moderate | Keeping pace with inflation |
| 7-12% | Strong | Building shareholder wealth |
| > 12% | Aggressive | May not be sustainable long-term |

## Real-world example

Johnson & Johnson has grown dividends for 60+ consecutive years at about 6% annually.

---

This is educational content, not financial advice.

Source: [Definition of Div Growth](https://signalscreener.fr/definition/dividend-growth/) on Signal Screener. Free to quote and cite with attribution and a link to that URL, which is the canonical one.

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