Use the dividend growth model to estimate fair stock prices based on future dividend growth. Be wary of model assumptions; real-world events like the pandemic can alter expected outcomes. Incorporate ...

Investors buy stocks to participate in the growth of a company. Many stocks reward investors with dividend payments, but how do you know whether you’re paying more for a stock than what it is worth?

Gordon Growth Model calculates stock value based on future dividends with steady growth. Inputs: current dividend, expected growth rate, required return rate. Effective for long-term investments in ...