Constant Growth Stock Calculator
Div: $  
Growth Rate (g):   %
Required Return (r):   %
Price (P0): $  

The Constant Growth Stock Calculator can be used to find the value of a Constant Growth Stock. The calculator can also be used to solve for the Current Dividend (D0), the Next Dividend (D1), the Dividend Growth Rate (g), or Required Return (r) given the values of the other variables.

  1. Dividend Popup - Use the popup to choose whether the Current Dividend (D0) or Next Dividend (D1) is displayed or entered in this field.
  2. Dividend Fields - The Current Dividend (D0) or Next Dividend (D1) is displayed or entered in this field.
  3. Growth Rate Field - The Dividend Growth Rate is displayed or entered in this field.
  4. Required Return Field - The Required Return on the Stock is displayed or entered in this field.
  5. Stock Price Field - The Stock Price is displayed or entered in this field.
  6. Buttons - Press these buttons to calculate the corresponding value.

Equations FYI: 

Po = D1/(r-g) = Do*(1+g)/(r-g), 

Where D1= next dividend; Do = just paid dividend; r=stock return; g= dividend growth rate; Po= current market price 

Dividend Yield = D1/Po = Do*(1+g) / Po; Capital gain yield = (P1/Po) -1 = g

 

 

copy right 2002 - 2019 by Mark A. Lane, Ph.D.
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