Dividend

There are some drawbacks of the Dividend Valuation Models which include factors like the difficulty of perfect projections and the assumptions of income from dividend. Although the principle behind the model is simple but applying the theory is challenging. The limitations of Dividend valuation Models are described below: The reality is that in some companies […]

When an investor pays for buying common stock, he expects to receive future cash flows in the form of dividends. When the stock is sold, the investor expects to receive the value of the stock. It is difficult to determine the value of the common stock because the future cash flows generated by dividends are

Dividend discount model is a quantitative method which is used to value a company’s stock price based on the theory that the current price of a stock equals the total of all of the company’s future dividends when discounted back to their present value. If the value from the dividend discount model is higher than

A scrip dividend provides shareholders with the option of receiving a cash dividend or common stock. When a company issues a scrip dividend, it allows shareholders to increase its holdings’ size without incurring any fees. Scrip dividends may be used when issuers have too little cash available for paying a cash dividend, but still wants