Dividend Growth

Plain-English definition

An increase in dividends per share between comparable periods. Percentage growth is the increase divided by the earlier amount.

Why it matters

More shares can increase an investor's total cash receipts even when dividends per share do not grow.

Example

A hypothetical regular dividend rising from $0.40 to $0.42 per quarter grows 5%.

How income investors use it

Compare like periods, adjust for share splits, and distinguish regular increases from one-time payments.

This material is general education, not individualized investment, tax, or legal advice.