NZ Dividend Growth Leaders

CAGR (Compound Annual Growth Rate) is the constant annual rate at which a value has grown over a period. For dividends, we calculate the rate at which dividend per share has grown over the last 5 fiscal years. A 5-year CAGR of 8% means the dividend has grown on average 8% per year compounded.

Current yield is a snapshot — what the stock pays today relative to today's price. Dividend growth is a trajectory — whether the dividend has been rising over time. For long-holding-period investors, a modest starting yield with sustained growth can compound to higher 'yield on cost' over many years. Past growth does not guarantee future growth.

No. A high 5-year CAGR captures the last cycle. The next cycle may look different — companies that grew dividends strongly during a recovery often flatten or cut in a downturn. Cross-check with the payout ratio (is there room to keep growing?) and the dividend-aristocrats list (has the company been through multiple cycles?).

A yield trap is a stock where the headline yield (or in this case, growth rate) looks attractive but the underlying distribution is unsustainable. The classic signal is high yield/growth combined with a payout ratio above 100%. Always cross-reference with our safer-dividends methodology page.

Mature companies in stable sectors (financials, consumer staples, infrastructure) often dominate dividend-growth rankings because they have predictable earnings growth and a deliberate dividend-growth policy. Cyclicals can appear during recovery phases but tend to disappear when the cycle turns.