Dividend Growth Rate Examples

Example of the week

Company profile: Medtronic PLC (MDT) has a multi-decade history of annual dividend rate increases.

Dividend trend: From 2003 to 2023, the compound annual growth rate (CAGR) of Medtronic’s dividend rate was 12.06%. The annual increases fluctuated significantly, ranging from 3.00% in 2023 to 42.06% in 2008. While the average dividend growth rate (DGR) was substantial, the trailing 5-year (T5Y) CAGR has been trending downward.

Dividend benchmarking: Medtronic’s DGR has significantly surpassed the rate of inflation, thus raising its shareholders’ purchasing power. It also exceeded that of Becton, Dickinson and Company (BDX) but trailed that of Stryker Corporation (SYK) while exhibiting less variability.