U.S. Markets open in 7 hrs 26 mins

Breaking Down the 2-Stage Dividend Discount Model for Beginners

- By Dave Ahern

Dividends are the best friends an investor has. They are the gifts that keep on giving, and finding a company that pays them consistently over an extended period of time is a great way to build your wealth. Determining the intrinsic value of a dividend-paying company is paramount to investing with a margin of safety. This helps protect our investments and grow our wealth. Using the Dividend Discount model is an excellent way to find that intrinsic value, and the use of the Dividend Discount Two-Stage model is a fantastic way to get a more precise view of that value.