Look up DFS Discover Financial Services on Yahoo Finance
Click on the Historical Prices link.
Click on "Dividends Only" radio button and only go back 6 to 8 years.
Record the dividends paid each quarter for the company's fiscal year and then annualize the data, i.e., multiply quarterly dividends by 4 or semi-annual by 2.
Then calculate the following:
1. growth rate
2. Use the Dividend Growth Model Formula to calculate stock's return
3. Use the current price of your stock and multiply your last paid dividend X (1+g) for the D1.
Re = D1/ Po + g
4. The return for your stock
5. Calculate the Re for your stock using the CAPM formula if the market risk premium (MRP) is 6.8% and the risk free rate = 2.1%
Re = Rrf + (MRP x Beta)
6. What is the average return on this stock?