How to Value a Dividend Stock! (Dividend Discount Model for Intrinsic Value Tutorial)
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- čas přidán 21. 12. 2023
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In this video, I take you step by step on how to value a dividend stock and how to perform 2 variations of the dividend discount model. Let me know your thoughts in the comments below!
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Hey @ Dividendology, how did you calculated the stage 2 growth rate?
What a great video to show google sheets use in the Dividend community as information tool . I learned allot as a 59 year old man. Thanks!
Glad it was helpful!
Shouldn’t discount rate be >10 so that you beat average market returns?
I have a couple quick questions, on the 2-stage dividend discount model, shouldn't you use the yearly dividend payout of $12 rather than $3 when creating the table with the present value? Also for some reason my excel gives me $3 for current, and then $3.08 for years 1, 2, 3, and 4... I used the exact same formula, Dividend Payout/(1+$WACC$)^Year for each column respectively. I am relatively proficient in excel as my work revolves around commercial real estate financial modeling/analysis and I have no idea why this is happening
Am a big fan of your channel! I just want to ask.. do you use solely the DDM price per share as your guide for your buy price or do you put in a Margin of Safety to it?
Curious because of course we are merely projecting isnt it right to give let say 10 or 20% MOS for our projections?
I typically use MOS
What are the weakness / strenghts points of this valuation model (in your opinion)? 😊
When calculating yearly dividends for year 1 through 4 at the 2 step model, shouldn't you had to use the 3% growth rate? As that's the assumed growth rate looking forward, instead of the 9% being used. (@ around 17:00)
That's what I was thinking too.
Hey @Dividendology, Can you use the divdend per share growth in seeking aplha for the growth input in the first model, cell F12?
that data should be something you consider for the projection
@@Dividendology Is there any definable percentage from seeking alpha or yahoo finance to put in cell f12? Thank you.
So for the growth rate projection 8,25% it is your opinion or there is a formula that can help you to calculate it ?
It should be based off of research. There is no formula for it.
the average growth should be company results growth, or dividend payment growth?? i don't get this..
when checking apple for example, dividend growth is around 4% yearly... so the fair price is super low.... thanks
Dividend growth.
EXCELLENT VIDEO-THANK YOU
You are welcome!
Good stock valuation tutorial, but let's see your business card.
how do you access the DDM model on google sheets ?
Tickerdata.com
Have to watch this when I get the time. Good information
Hey Dividendology, i got a issue. When i made de WACC i have 8% and my growth is 10%, now my DDM Price per share is -X. So you gonna tell me that if WACC > Growth you will have a negative price?
Maybe you can help or explaine because now i'm lost.
Love the video
In this form of the DDM, it won’t work if the growth rate is higher than the discount rate.
@@Dividendologywhat if this is the real scenario? 😮
Hey can you share the sheet bro?
Yes! It’s on my patreon page. Link in description.
If you have $7,500 would you invest roht etf which would you buy .schd o vgt . I now in long run schd good if you need to grow, Fast .
depends on your goals!
how do you access the DDM model on google sheets ?
You can download this one on Tickerdata.com !