This dividend stock value calculator uses the constant-growth Gordon model. Enter a regular annual dividend per share at the starting point (D0), an annual growth assumption, and a required annual return. Inputs and results use the same currency per share. It does not fetch a company's latest dividend or select assumptions for you.
Reproduce the worked example
An illustrative $2 starting annual dividend growing at 3% becomes $2.06 next year. At a 10% required return, $2.06 / (0.10 - 0.03) produces a model value of approximately $29.43. Applying a 25% margin-of-safety discount gives $22.07. A $25 market quote implies an 8% trailing yield on the $2 input and approximately a 15.0% discount to the model value.
Interpret the sensitivity table
The table changes the growth rate and required return by one percentage point around your inputs. It shows how sensitive the calculation is to assumptions. Cells where required return is not above growth, or the other model conditions fail, show no finite model estimate. Scenarios are arithmetic comparisons, not forecasts or probability-weighted outcomes.
When this calculator does not fit
The model assumes a positive dividend that can grow at one constant rate indefinitely, with required return above that growth rate. Businesses with unstable distributions, special dividends, changing payout policies, or substantial value retained rather than distributed need a more suitable analysis. See CFA Institute's dividend-model overview.
Research before relying on an estimate
Read the dividend valuation formulas to understand D0 versus D1, and the dividend safety checklist to evaluate the business behind the payout. The dividend screener provides candidates and payment-history context, not validated model inputs.
Return to Dividend Value Investing for the complete research process, or Value Investing for other valuation approaches.