A good metric for looking at how a company has done over the past few years is to look at their compound annual growth rate, or CAGR for short. Recently I have been looking at this figure a lot more when I research great dividend paying stocks for investments. I use the number that the CAGR formula pumps out in conjunction with the yield and the yield growth to check if a company is worth a further look.
Before we jump in, it’s probably best to make sure that you know exactly what CAGR is and how you can calculate it. What you’re going to need is a start value, an end value, and a time frame. My time frame is typically five years. From there, you’ll end up with a formula that looks like this and can be used in Excel for efficiency in calculation: ((End-Beginning)^(1/time))-1
Source: Motley Fool
Related Articles:
- 7
Dividend Stocks With Room To Increase Their Payout
- 9 High Rated, Lower Debt Dividend Stocks With A Reasonable Payout
- 4 Dividend Stocks To Avoid The Social Security Blues
- Who is Ben Grossbaum and Why Should We Listen to Him?
- 9 High-Yielding Mega-Cap Stocks
Dividend Growth Stocks News
- Isabella Bank And 2 Other Top Dividend Stocks To Consider - Yahoo Finance - 5/15/2025
- 3 High Dividend Stocks To Sell - Barchart.com - 5/14/2025
- 3 Top Dividend Stocks to Maximize Your Retirement Income - Yahoo Finance - 5/15/2025
- 3 Magnificent S&P 500 Dividend Stocks Down 62%, 63%, and 64% to Buy and Hold Forever - The Motley Fool - 5/14/2025
- 3 Asian Dividend Stocks Yielding Up To 6.1% - Yahoo Finance - 5/15/2025
- Air Products and Chemicals Inc. (APD) Dividend Stock Analysis - 5/9/2025
- Waste Management, Inc. (WM) Dividend Stock Analysis - 5/2/2025
- Wal-Mart Stores, Inc. (WMT) Dividend Stock Analysis - 4/25/2025
- Abbott Laboratories (ABT) Dividend Stock Analysis - 4/18/2025
- General Dynamics (GD) Dividend Stock Analysis - 4/11/2025
Using Math To Identify Top Dividend Stocks
Posted by D4L | Friday, March 15, 2013 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.