● To illustrate how the geometric average and the arithmetic average of historical dividend growth can differ, consider the following dividends paid by the Joltin’ Joe Company:

2019: $2.20 2016: $2.00 2018: 2.00 2015: 1.50 2017: 1.80 2014: 1.50 Because the starting and ending dividend amounts are the same as they are in the Broadway Joe example, the geometric growth rate is still 8 percent.