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What is a reasonable dividend growth rate?

Asked by Anonymous Sep 02, 2026 0 views 1 answers
Find out What is a reasonable dividend growth rate and explore helpful information and answers.
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Answered Sep 02, 2026

A sustainable and reasonable dividend growth rate typically mirrors a company's underlying earnings per share (EPS) and free cash flow growth, commonly ranging between 5% and 10% annually for mature, blue-chip dividend-paying corporations. Anything significantly higher can sometimes be unsustainable unless backed by explosive, durable net income expansion.

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