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Dividend Discount Model (DDM) |
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Dividend Discount Model (DDM)A method to value the common stock of a company that is based on the present value of the expected future dividends.Dividend Discount Model (DDM) Similar MatchesDividend policyDividend policyStandards by which a firm determines the amount of money it will pay as dividends. Cum dividendCum dividendWhen a share is said to be 'cum dividend', it means that it is offered for sale with an entitlement to the next dividend payment attached. This dividend will already have been declared (but not paid) by the company, so the market knows how much it is worth and the share price will reflect this.At some point shortly before payment of the dividend is actually due, the share will go 'ex dividend', meaning that it is being offered for sale without the dividend. If the current owner sells an 'ex div' share, he will keep the dividend payment. But again, the price of the share will reflect this - it will have dropped from its 'cum dividend' price. Dividends payableDividends payableThe declared dividend dollar amount that a company is obligated to pay. Residual dividend approachResidual dividend approachAn approach that suggests that a firm pay dividends if and only if acceptable investment opportunities for those funds are currently unavailable. Interim dividendInterim dividendThe dividend declared before annual earnings are established. Companies in the UK usually pay two dividends per year, the interim dividend and the final dividend. The interim dividend is usually the smaller of the two. In the USA, a dividend is usually paid quarterly. Further Suggestionspassed dividendCum dividend Traditional view (of dividend policy) year end dividend income dividend scrip dividend Equalizing dividend stock dividend Year end dividend Dividend capture Tax differential view (of dividend policy) Interim dividend dividend yield extra dividend accumulated dividend dividend final dividend Dividend in arrears Dividend clientele Special dividend Homemade dividend Dividend Order ex dividend Dividend payout ratio Dividend |
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