Dividend growth model
An approach that assumes dividends grow at a constant rate in perpetuity. The value of the stock equals next year's dividends divided by the difference between the required rate of return and the assumed constant growth rate in dividends.
Nearby TermsDividend Discount Return Dividend distribution Dividend growth model Dividend in arrears Dividend income
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University