Clinton Inc paid dividends of $2.10 in 2016,, 2.20 in 2017, 2.37 in 2018, and $2.50 in 2019. A reasonable estimate for the dividend growth rate is 6%.

Question

Quizplus · Accepted Answer

The dividends are increasing each year, and calculating the growth rate using the formula for the compound annual growth rate (CAGR) would yield a result close to 6%, indicating a reasonable estimate for the dividend growth rate.

Clinton Inc Paid Dividends of $2