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Sustainable growth rateAnalyst
How fast dividends can grow from reinvested earnings alone.
What you’ll enter
- Return on equity
- Payout ratio
Included with Analyst
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The formula
g = ROE × (1 − payout ratio)
A company that keeps part of its earnings and earns ROE on them can grow at this rate without new debt or shares. Useful for sanity-checking DDM growth.