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Investing Glossary:
Dividend growth model
Copyright 2009,
Campbell R. Harvey. All Rights Reserved.
Do not reproduce without explicit permission.
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| Term: |
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| Definition: |
| An approach that assumes dividends grow at a constant rate in perpetuity. The value of the Stock equals next year`s dividends divided by the difference between the required Rate of return and the assumed constant growth rate in dividends.
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