What amount do I put in the "expected increase percent per year" and the "dividend growth rate average percentage per year" box?

Asked 4 years ago

Hello I'm trying to do a dividend drip calculation with ENB for 20 years. What amounts do I put in, and what would you put in the expected share price increase box as an estimate? I am getting confused with numbers. Thanks!

Andia Rispah Igobwa

Monday, July 12, 2021

For the dividend growth rate (DGR) average percentage per year, the calculation is DividendYearX and divided by Dividend Year (X-1) - 1.
For expected increase percent per year, you should calculate the company's dividend hikes over the last ten years and determine the average. This is achieved by adding the increases and then dividing it by the number of increases.
Also, a great source is the Future Value Calculator, which can give you an estimate of potential dividend increases in the future. This helps somewhat simplify the process.