Martin Stoynov’s Post

What is the dividend discount model? The dividend discount model is one of my favorite stock models. It tells the investor what the present day cash value of the returns they will receive is based on the dividends and future sale of the stock. We have inputs of:  -The Current Dividend: The annual amount we currently get paid for owning the company -The Dividend Growth Rate: The amount our dividend increases every year -Discount Rate: The minimum rate required to justify entering an investment. I set mine at roughly the SP500 -Stock Appreciation Rate: The rate our stock price will increase per year -Current Stock Price: The amount the stock presently trades for on the market This yields: -Total Cash Return which is discounted to today! FREE Model for you to play with for you investments: Dividend Discount Stock - Google Sheets Here is an example:

Dividend yield is a financial metric that indicates the annual return on investment (ROI) an investor receives from owning a particular stock, expressed as a percentage. It is calculated by dividing the annual dividend per share by the current price per share of the stock. Essentially, dividend yield shows how much income an investor can expect to receive from owning a stock relative to its current market price. A higher dividend yield suggests a higher return on investment from dividends, while a lower dividend yield indicates a lower return. #stockmarket #dividends #dividendyield #shareprice

"Dividend rate vs. dividend yield: Know the difference." This simple graphic breaks it down in a way that's easy to understand. Key takeaways: Dividend rate: The percentage of a stock's paid-up value distributed as dividends annually. Dividend yield: The annual dividend per share as a percentage of the current stock price. Example: A stock with a dividend per share of Rs. 3 and a current price of Rs. 50 has a dividend yield of 6%. Want to become a smarter investor? Understanding these terms is essential. #DividendRate #DividendYield #InvestingTips #Finance #StockMarket #Investment

The Dividend Discount Model (DDM) values a stock by estimating the present value of its expected future dividends. The basic idea is: Stock Price=D1r−g\text{Stock Price} = \frac{D_1}{r - g}Stock Price=r−gD1 where: D1D_1D1 = Expected dividend next year rrr = Required rate of return ggg = Dividend growth rate This model is best for companies with stable, predictable dividend payments and assumes dividends grow at a constant rate. It may not be suitable for companies that don't pay dividends or have unpredictable dividend patterns.

Word of the Day: Dividend Yield Dividend yield is crucial for investors looking to make informed decisions on where to invest their money. It is calculated by dividing the amount of dividend paid by a company by its share price. For instance, if a stock is priced at Rs 100 and the company pays a dividend of Rs 2 per share, the dividend yield will be 2%. The dividend yield is an indicator of how much a company shares its profits with its shareholders. The higher the dividend yield, the higher the amount of dividend being paid out. So, keep an eye on the dividend yield while investing to make wise decisions.

"Common Stocks & Preferred stocks" Both (preferred stock and common stock) represent ownership in a company, but they have some key differences that affect your rights and potential returns as an investor. Here's a breakdown: 1) Dividends Priority: If BOD declared dividends, common stockholders will receive dividends "After" preferred. 2) Claims on assets in liquidation: in liquidation case (Bankruptcy), common stockholders claims were satisfied as a residual "After" satisfying all other claims. 3) Preemptive rights: Existing common stockholders have the opportunity to buy a proportionate number of new shares before they are offered to the public. this helps existing shareholders avoid dilution of their ownership stake. *But on the other hands* - common stockholders have voting rights and control but preferred stockholders haven't these rights. So, which one is better? #Financial_Management #CMA

The holding period yield (HPR) is the percentage change in the value of an asset over a specified period. Given the following information, calculate the holding period yield, rounded up to the nearest whole percentage. Stock ending price: $50 Dividend paid out: $4 Original purchase price: $42 1-29% 2-10% 3-19% 4-24%

The New York Stock Exchange NYSE is proposing to limit the use of reverse stock splits that companies typically use to boost slumping share prices in order to avoid delisting and get back in compliance with the requirements that average closing share prices remain at $1 or more over a 30-day trading period, according to a notice of the proposed rule change dated Oct. 10. Under the NYSE’s proposal published by the Securities and Exchange Commission, section 802.01C of its rules would be amended so that the exchange would begin suspending and delisting a company if its shares stood at less than a $1 price and if it had already used reverse stock splits to boost its shares during the prior one-year period, or those which had undertaken one or more reverse stock splits over the prior two-year period with a cumulative ratio of 200 shares or more to one. #reversestocksplit #NYSE https://lnkd.in/gYm_s6Wt

Question: Company A has declared a 10% stock dividend on its 40,000 outstanding shares(par value USD.1 & Issued value is 20), with the payment date being immediate. How should the company account for this stock dividend in its financial statements? Options: A. Make a cash payment to shareholders. B. Adjust retained earnings and increase common stock and additional paid-in capital (APIC). C. Record the stock dividend as an expense on the income statement.