Estimating the dividend growth rate

This assignment requires you to calculate the growth rate in dividend for Company A and one of its competitors Company B. Divident data is available below. Calculate the annual dividend growth rate for each of the last 10 years. Based on the annual dividend growth rate for each company, will you forecast a constant or non-constant growth in dividends? Explain.

Repeat the above steps for the competitor company.

Date Company A 3/8/2012 3/8/2013 3/10/2014 3/10/2015 3/9/2016 3/8/2017 3/9/2018 3/8/2019 3/9/2020 3/9/2021 6/7/2021 9/7/2021 12/6/2021 3/8/2022 Dividends 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 1 1 1 1 1.12 Company B Dividends 3/1/2012 0.163 6/13/2012 0.213 9/12/2012 0.213 12/7/2012 0.213 3/13/2013 0.212 6/13/2013 0.28 9/11/2013 0.28 12/4/2013 0.28 3/12/2014 0.28 6/12/2014 0.375 9/10/2014 0.375 12/3/2014 0.375 3/11/2015 0.375 6/11/2015 0.5 9/9/2015 0.5 12/2/2015 0.5 3/9/2016 0.5 6/15/2016 0.625 9/7/2016 0.625 11/30/2016 0.625 3/8/2017 0.625 6/15/2017 0.75 9/7/2017 0.75 11/30/2017 0.75 3/8/2018 0.75 6/15/2018 0.9 9/6/2018 0.9 11/30/2018 0.9 3/8/2019 0.9 6/14/2019 1.08 9/13/2019 1.08 12/6/2019 1.08 3/13/2020 1.08 6/19/2020 1.25 9/11/2020 1.25 12/4/2020 1.25 3/12/2021 1.25 6/18/2021 1.45 9/10/2021 1.45 12/3/2021 1.45 3/11/2022 1.45 Date Date Company A 3/8/2012 3/8/2013 3/10/2014 3/10/2015 3/9/2016 3/8/2017 3/9/2018 3/8/2019 3/9/2020 3/9/2021 6/7/2021 9/7/2021 12/6/2021 3/8/2022 Dividends 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 1 1 1 1 1.12 Company B Dividends 3/1/2012 0.163 6/13/2012 0.213 9/12/2012 0.213 12/7/2012 0.213 3/13/2013 0.212 6/13/2013 0.28 9/11/2013 0.28 12/4/2013 0.28 3/12/2014 0.28 6/12/2014 0.375 9/10/2014 0.375 12/3/2014 0.375 3/11/2015 0.375 6/11/2015 0.5 9/9/2015 0.5 12/2/2015 0.5 3/9/2016 0.5 6/15/2016 0.625 9/7/2016 0.625 11/30/2016 0.625 3/8/2017 0.625 6/15/2017 0.75 9/7/2017 0.75 11/30/2017 0.75 3/8/2018 0.75 6/15/2018 0.9 9/6/2018 0.9 11/30/2018 0.9 3/8/2019 0.9 6/14/2019 1.08 9/13/2019 1.08 12/6/2019 1.08 3/13/2020 1.08 6/19/2020 1.25 9/11/2020 1.25 12/4/2020 1.25 3/12/2021 1.25 6/18/2021 1.45 9/10/2021 1.45 12/3/2021 1.45 3/11/2022 1.45 Date