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. Part 1 of this article explains the formula and its shortcomings. The second part will speak to fixing those shortcomings and adding a margin of safety.
With 24 consecutive years of dividend increases, First of Long Island Corporation is nearing the point where they will become a Dividend Champion. It is time to examine it to see if it might be a good fit for your portfolio.