Respuesta :
The dividend growth rate at this price is 6.22%
Fixed Annual Dividend = 2.28
r = 11.5% = 0.115
Price = P0 = 43.30
According to Dividend distribution model,
r= Dividend/Price + g where g is the dividend growth rate
0.115 = 2.28/43.20 + g
0.115 = 0.5277 + g
g = 0.0622 = 6.22%
Buyers trying to diversify their portfolio, hedge towards marketplace downturns and inflation, or doubtlessly generate passive earnings might also flip to dividend boom investments. The organizations supplying those kinds of stocks are regularly diagnosed as being strong, low volatility, and even having an effective future outlook.
An employer's dividend or dividend price is expressed as a dollar determine and is the mixed overall of dividend payments expected. The dividend yield is expressed as a percentage and represents the ratio of an employer's annual dividend compared to its share charge.
Dividends offer protection in down markets, giving buyers access to cash, either to spend or to buy the greater stock after fees have fallen. This phenomenon creates an extra call for dividend-paying stocks in down markets and can assist in similarly stabilizing expenses.
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