A stock's dividend CAGR measures the annualized growth rate of its dividend payments over a multi-year period.

For example, if a $1 annual dividend grew to $1.50 over 5 years, its CAGR for dividends is around 8.4%.

The dividend CAGR shows a company's historical commitment to raising its payout, which income investors prioritize. High CAGRs increase the income stream's long-term growth potential.