This is the final day of posting about the SSG in Toolkit 6, and deals with section 5. We don't get too many questions on this part of the form, and the ones that do come in usually end up involving more than one line in this section. In addition to this posting, I would also suggest to go back to the Support Ticket 77 posting; Jim Thomas makes a good point about what can happen if a company has only recently started paying dividends. While that is primarily about section 3 and 4, it also ties into section 5, where dividends play a part in the figures you'll see on the form.

These are notes on some of the pieces in Section 5 that we've received questions on:

Average % payout in Section 5 B: By default, this is the average of the % Payout Column in section 3 of the SSG.
(The figures in the % payout column are calculated as Dividend divided by EPS.)
When divided by Forecast High or Forecast Average P/E, the Average Yield is the result.

The average yield is then added to the Annual Appreciation to give Compound Annual and Projected Average Total Return figures.This leads to the next question, "What is Annual Appreciation, and how is it calculated?"

Appreciation in 5 C and D: The short answer is that it’s the compounded annual growth rate (CAGR) of the share price.
This leads to the question, "What is CAGR?". According to Investopedia: "CAGR is the year-over-year growth rate of an investment over a specified period of time."
For a visual representation of the formula, and a good example of the formula in action, we suggest to visit the Investopedia page on this topic at:
http://www.investopedia....c/cagr.asp#ixzz1j4y7vI1E

To bring this back to a short answer:
The Annual Appreciation in 5c is (roughly) the growth rate to get from the current Price to the Forecast High Price.
5d is a little more complicated, but it tries to show the average growth rate of price over time. It does this using the Selected High and low P/E, as well as the Estimated High EPS.