how do i calculate the CAGR for this set of 20 quarterly dividends? May 28, 2009 $0.34000 Feb 27, 2009 $0.34000 Dec 1, 2008 $0.34000 Aug 28, 2008 $0.34000 May 29, 2008 $0.31000 Feb 29, 2008 $0.31000 Nov 29, 2007 $0.31000 Aug 29, 2007 $0.31000 May 30, 2007 $0.29100 Feb 27, 2007 $0.29100 Nov 29, 2006 $0.29100 Aug 30, 2006 $0.29100 May 30, 2006 $0.27800 Feb 27, 2006 $0.27800 Nov 29, 2005 $0.27800 Aug 30, 2005 $0.27800 May 27, 2005 $0.25300 Feb 25, 2005 $0.25300 Nov 23, 2004 $0.25300 Aug 27, 2004 $0.25300
You only need the first and last values. Compound annual growth rate, in this case, is (0.253/0.34)^(1/19) - 1.
Hello Mister Walrus Wrote: ------------------------------------------------------- > You only need the first and last values. Compound > annual growth rate, in this case, is > (0.253/0.34)^(1/19) - 1. can you link me to that formula or define why it is 1/19 and not 1/5 or 1/20? the CAGR here uses 1/n years http://www.investopedia.com/terms/c/cagr.asp
Yeah, I was assuming quarterly CAGR. If you have 20 data points, you have 19 growth periods, hence n = 19. If you want a yearly CAGR, it will be (0.253/0.34)^(4/19) - 1
thanks. very helpful