Description
There are many popular valuation models for dividend stocks like the dividend discount model or the discounted cash flow model. But they all require you to gather data and think about the how fast a given company can grow in the future. I prefer to use Dividend Yield Theory as my main valuation technique for dividend stocks. It is significantly easier to put together, doesn't require you to come up with any growth rates and can be done in as little as a few seconds. If you can run your valuation model faster then you will have more time to spend reviewing the underlying business.
In this episode I talk about dividend yield theory and I put it through the ringer to see not only whether it works but also how efficient its application would have been historically. I think you'll enjoy this analysis!
This episode was originally broadcast on my YouTube channel if you'd prefer to consume the content in video format you can use the link below
https://youtu.be/tXUpy-hLtrk
M1 Finance referral link:
https://m1.finance/UNbCUpuP36lm
Here is a link to my YouTube channel if you'd like to see more content from me
https://www.youtube.com/c/LongacresFinance
And a link to my Patreon page if you feel inclined to support the channelĀ
https://www.patreon.com/LongacresFinance
Disclaimer: This is intended for entertainment purposes only and should not be taken as investment advice.