Net income growth vs dividend growth

If nothing is mentioned about the growth of net income but the growth of dividends is stated, does that imply that the growth of net income also should be the same as that of dividends?

My question is based on morning mock exam CFAI.

Are you mentioning Gordon growth method?

We have: D1 = D0(1+g)

Rewrite : E1(1-b) = E0(1-b)(1+g). You cancel (1-b) out and you get E1 = E0(1+g)

If the payout ratio is constant, growth in income equals growth in dividends, and vice versa – right?


Thanks! yes that was my point. There has to be an implicit assumption made when we consider the growth of dividends and net income the same.