Stock Meadow · Metric glossary · Dividends
Dividend Growth Rate (3-Year): formula and how to read it
Dividend growth shows how fast the payment per share has been rising. A growing dividend can outpace inflation and signals management confidence.
What is Dividend Growth Rate (3-Year)?
How fast the dividend per share has grown each year. Compound annual growth of dividends paid per diluted share over the last three fiscal years.
Stock Meadow groups it under Dividends, and shows it in tables as Div. growth 3y.
Formula and a worked example
Dividend growth = (dividend per share now ÷ dividend per share three fiscal years ago)^(1/3) − 1
A dividend that rose from $1.00 to $1.33 per share over three years has grown by about 10% a year. The numbers are made up for illustration.
How to read it
A higher figure means a faster-growing dividend. Steady growth is a stronger signal than a single large increase.
When Stock Meadow ranks stocks, a higher figure scores better.
Common pitfalls
- Needs three full years of dividends, so it is blank for recent payers.
- A low starting base can make growth look large.
- Growth that outruns earnings is not sustainable. Check the payout ratio.
How Stock Meadow handles gaps. Usually blank when the company hasn't paid a dividend for three full years.
Treat any single metric as one clue, and read the company's financial statements before drawing a conclusion. Stock Meadow's figures are research tools based on reported data, not investment advice.
Stock Meadow models that use it
Fixed-recipe models that score it: Income (dividends).
In Weighted ranking, Z-score composite and Balanced (no weak link), you choose the metrics and weights yourself, so you can include it in a custom score.
Read about every scoring model on the scoring models page.
Frequently asked questions
- Why does dividend growth matter?
- A dividend that grows can keep pace with inflation and raise the income from the same shares over time. It is most reassuring when earnings and cash flow are rising as well.
- Is a higher or lower Div. growth 3y better?
- When Stock Meadow ranks stocks, a higher figure scores better. That is a ranking convention, so read Div. growth 3y alongside other measures and compare similar companies.
- Why is Div. growth 3y blank for some stocks?
- It is usually blank when the company hasn't paid a dividend for three full years. Stock Meadow leaves the figure blank rather than guessing it.
Use Div. growth 3y in Stock Meadow
Filter on Dividend growth (3-year), score it in your own screen, and see how every stock compares. Free during the preview.
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