Is it important the amount the dividend increase yearly?
Think of a share of 10€ that pays an annual dividend of 4,0%, 0,40€. Imagin that you invest there 10.000€, so you buy 1.000 shares. If the dividend and the price increse yearly a 6%, the result after up to 20 years will be:
| Year | Price | Investment | Dividend | |
| Amount | % | |||
| 0 | 10,00 | 10.000,00 | 0,40 | 4,0% |
| 1 | 10,60 | 10.600,00 | 0,42 | 4,0% |
| 2 | 11,24 | 11.236,00 | 0,45 | 4,0% |
| 3 | 11,91 | 11.910,16 | 0,48 | 4,0% |
| 4 | 12,62 | 12.624,77 | 0,50 | 4,0% |
| 5 | 13,38 | 13.382,26 | 0,54 | 4,0% |
| 7 | 15,04 | 15.036,30 | 0,60 | 4,0% |
| 10 | 17,91 | 17.908,48 | 0,72 | 4,0% |
| 15 | 23,97 | 23.965,58 | 0,96 | 4,0% |
| 20 | 32,07 | 32.071,35 | 1,28 | 4,0% |
An increasing dividend policy is important because:
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