The Prudent Investor

Letting Dividends Do Their Work

Most Recent Articles

Alpha and Beta
Risk and reward are intertwined.  Risk is acceptable if paired with an appropriate reward, and understanding how alpha and beta fit into the calculation is essential for the proper determination of risk.
Learning from Dividend Reductions
In July Codorus Valley Bancorp, a company that has increased their dividend annually each of the past nine years, announced that they were cutting their dividend by more than a third.  Examining the warning signals that preceded the decision can be instructive in alerting us to some of the signs of an impending dividend cut.
The Dividend Discount Model for Dividend Investors
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. This article explains the formula and its shortcomings, as well as means to fixing those shortcomings and adding a margin of safety.
 

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by George L Smyth



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