The dividend growth rate is an important metric used by investors to gauge the potential of a company’s stock. It measures the rate at which a company is increasing its dividends over time, and serves as an indicator of the health, profitability, and long-term sustainability of the company. A high dividend growth rate signals that the company is doing well and is likely to keep paying out dividends in the future. Conversely, a low dividend growth rate may signal financial difficulty or underperformance, and could be a red flag for prospective investors.