Enter the annual dividends, required rate of return by investors, and the current price of a stock to calculate the constant growth rate.

## Constant Growth Rate Formula

The following formula is used to calculate the required constant growth rate.

CR = [ (P*r) – D ] / (P + D)

- Where CR is the constant growth rate %
- P is the current price
- r is the required return rate on dividends
- D is the current annual dividends

## FAQ

**What is a constant growth rate?**

The constant growth rate is a return rate on a stock that is required in order to hit a certain growth rate on the dividend.

## Related Terms

constant growth rate calculator |

constant growth rate formula |

how to calculate constant growth rate |

constant growth model formula |

constant growth formula |

constant growth model calculator |

constant dividend growth model formula |

constant growth calculator |

constant growth stock calculator |

constant dividend growth formula |

constant dividend growth model calculator |

constant growth stock formula |

how to find constant growth rate |

constant annual growth rate formula |

constant growth dividend discount model formula |

constant growth valuation calculator |

constant growth dividend discount model calculator |

dividend constant growth formula |

constant growth stock valuation calculator |

constant growth dividend calculator |