Dividend growth rate

Dividend growth rate — the rate at which a company’s peso dividend has grown over a multi-year record (5+ years to mean anything). A rising dividend is the strongest signal a board treats the payout as a commitment, and it’s the income sleeve’s inflation protection: a static 7% yield in a 4–5% inflation year is quietly shrinking in real terms. Growth pattern: moderate yield + payout under 70% + dividends rising. Contrast with the yield trap, where the “growth” is in the yield number only because the price collapsed.

First used in: 2.1 · Dividends without the traps