RT Journal Article
SR Electronic
T1 Valuation of Stocks with Prospects of Dividend Growth
JF The Journal of Investing
FD Institutional Investor Journals
SP 64
OP 68
DO 10.3905/joi.2002.319496
VO 11
IS 1
A1 John A. Haslem
YR 2002
UL https://pm-research.com/content/11/1/64.abstract
AB The objective it to demonstrate the use of dividend models to approximate growth rate or required rate of return assumptions underlying current stock prices. The analysis uses two models, Williams and Brigham-Pappas, for easy testing of “what if” assumptions concerning implicit growth assumptions in current stock prices. The results demonstrated that the particular model selected to describe a stock's dividend time path, dividend growth rate and the required rate of return has a large impact on the stock's identified value. It was also observed that the stock price applied has a large impact on the stock's identified rate of return and the stock price applied has a large impact on the stock's identified dividend growth rate.