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?

The formula for DYM draws on the frameworks of the Gordon Growth Model and Dividend Discount Model, which boils down to taking the current dividend yield and adding a growth estimate. The assumption ...

There are many different ways to determine the intrinsic value of a stock. One popular method is the dividend discount model, which uses the stock's current dividend and its expected dividend growth ...