Dividend Growth Model

The Dividend Growth Model, also known as the Gordon Model, is a fundamental analysis methodology for determining the value of a stock or business. This model is used as a strategy for investment based on the dividend yield. It values a company based on the dividends currently paid as well as the pattern of dividend growth that the company has displayed over time.  Although not all investors are comfortable with this

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How to Calculate Average Dividend Yield

Dividend Stock research

What We Have Learned So Far It is very important when investing to not only evaluate a company against others in its sector or industry, but also against itself. In previous articles, we have discussed the dividend payout ratio, free cash flow, Z-Score and Return on Invested Capital (ROIC). All of these metrics are used as a way to evaluate stocks against their peer group, but also against themselves at

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High Dividend Stocks

When investing in dividend paying stocks, the dividend yield is obviously a factor that is part of most initial dividend stock screens.  High dividend stocks, meaning those stocks that offer a very high dividend yield, seem attractive when yield is viewed in isolation. As we know, investing in dividend paying stocks is more complex than just searching for the highest yield. In fact, we know that high dividend stocks are

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Fighting The Herd Mentality

We’ve recently come to recognize the herd mentality that’s been corralling the minds of retail investors and how this has led to a ‘bubble’ in U.S. Treasuries. This phenomenon reflects the extreme risk aversion that’s moving the markets these days and how people are more focused on return of investment than return on investment. Even though the yield on Treasuries is at historically low levels, investors are willing to sacrifice

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