How to Value a Dividend Stock! (Dividend Discount Model Example)

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In this video, I go over step by step how to value a dividend stock using the dividend discount model. This is a method that has been used by many famous investors over the years, and has allowed investors to properly determine how to value dividend paying stocks.

I am not a Financial advisor or licensed professional. Nothing I say or produce on YouTube, or anywhere else, should be considered as advice. All content is for educational purposes only. I am not responsible for any financial losses or gains. Invest and trade at your own risk.

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[reybigcena]

Well, I said it once and I'll say it again, you are really good at explaining these formulas using real examples.
Funny how you are the only guy on youtube that goes straight to the point in a simple and understandable way.

[jesterianestrada]

Man, sharing your knowledge feels like receiving dividends to my financial brain investment! hahaha. You make seemingly complicated stuffs so simple. You're an awesome teacher☺. I wish you can add some takeaways every end of your videos for scenarios where the method might not apply (such as if a negative output for this one). Also, if you can make for ETF valuation, but i think its always close to NAV? sorry, dummy brain here😅 Nevertheless, your tutorials are so helpful. Thank you so much. Keep making more (sounds demanding)hehehe.

[thearayshow]

I watched this during my work break! This was amazing! Definitely hitting the sub button! Thanks for break in down the dividend discount model 💯

[TheAnthonyWagner]

What you did was so valuable.. Thanks Bro. I am subscribing

[laubena]

You should not use the WACC to discount the dividends of a company, you should use the Cost of Equity! Great video btw :)

[hp]

What if WACC minus Average dividend growth is negative? Will the formula still work or does it need an adjustment?

[piyushi]

What does it mean when the result of difference is negative nmbr ?

[anthonykaroussos]

Can you possibly do a video covering how to calculate WACC? Using both the market value of equity and market value of debt?

[altmile]

Hi, for the dividend discount model, aren't we supposed to use the cost of equity insted of the WACC to find the intrinsic value?

[joaovitorsantiago]

What formula should I use when the average Growth Rate is higher than WACC? idk what to do

[LucyyyQ]

Thank you so much! you solved the problem I have been stucked for a long time

[ArturoGarzaID]

I'm getting an intrinsic value that's like a giant negative number. I'm working on AVGO.

[dunalar]

I really like your channel and cannot wait seeing new guides, but Is there a way automate it when changing the ticker?

[samsonbouillon]

Hi, can't we just use the CAPM instead of the WACC to calculate the yield expected by the market ?

[ciphrwolf]

Cool stuff man. Do you recommend any books to dive deeper into this topic?

[afbarnes]

Is it valid to use WACC as WACC used both cost of equity and debt?

[菱田ルリ]

Hi, I want to know why use WACC but not cost of equity in this video?

[michaelabghari]

What do you do If the Average Growth Rate is bigger than WACC?

[ivanbosnjak]

Why would you use WACC in dividend discount model, why not cost of equity?

[relax]

Can you explain how can the Div. discount model reliably tell us the intrinsic value of a stock? If a company doesn't pay dividends, than according to this formula the stock will have no value???? we are not counting in anything else of the company's earnings.