The Dividend Investing Resource Center

Letting Dividends Do Their Work

The Dividend Discount Model for Dividend Investors – Part 2

by George L Smyth

The Dividend Discount Model is a means of valuing a stock price that is relevant to dividend investors because the theory is based on the sum of all of the stock’s future dividend payments. The first part of this article explained the formula and its shortcomings. This second part speaks to fixing those shortcomings and adding a margin of safety.

This article can be found at The Dividend Discount Model for Dividend Investors.


This website is maintained by George L Smyth