Simple Dividend Formula So We Don't Overpay for Dividend Stocks

[@jershir7599]

Would love to see the dividend aristocrat valuation video

[@LearntoInvest]

Will do! 🙂👍

[@shadowninja6689]

I second this.

[@robertoc.j.5563]

@@LearntoInvest great!

[@chunker6455]

Would love this

[@FcCopa90]

👍🏼👍🏼👍🏼👍🏼

[@SD4...]

I am in my second year of my master's degree in finance and none of my professors were able to explain the fair valuation of stocks in such an easy way as Jimmy, best investment channel out there for sure.

[@LearntoInvest]

Thanks, I appreciate the kind words 🙂👍

[@zeppeinvest-stockmarketvid1441]

Nice words!

[@Viper4ever05]

lol if you want to confuse students just give them a lecture on options

[@SD4...]

@Open Ranks what debt? University is about $1K a year in my country lol plus this topic is like 2 hrs of class only. But it's obvious you're not familiar with schools.

[@thumbodyelse21]

Wow. That's not good to hear. My finance Prof taught us this in my bachelor's.

[@barrettjones127]

Yes, I would be interested in seeing this fair value analysis over all dividend aristocrats. Thank you for this

[@kiubixweb]

Do one with the big ones. 3m, macy's and so

[@MikeThaInvestor]

I think this is the fastest I've seen this broken down Jimmy! And made things a little easier as well, thanks for making this video!

[@jasonj7076]

Awesome, learned something new. Would like to see a video on some of the aristocrats, also looking forward to your top staples choices

[@thatsmyjam8403]

Best investing channel out there, no bullshit about cars and getting rich fast. Just the simple facts. Keep it up !

[@GregK235]

Thanks for working through the DDM computations. It reminds us not to use such formulae blindly without considering whether it's appropriate for a particular company. It would be interesting to see if the CAPM calculation could work as an input for r.

[@marcusaurelius2991]

This channel is the best of the best.

[@christianh.riiser2807]

Another excellent video from Jimmy regarding valuation of a dividend stock - more examples with dividend stocks please !!! - keep them coming !!!

[@pepleatherlab3872]

Yes indeed Jimmy. Please make that dividend evaluation video happen. That would be awesome.

[@Murchlives]

When Sheldon Cooper realized that it was money and not the conservation of angular momentum that "makes the world go 'round".

[@georgehadley7863]

Jimmy - Very good video. The dividend aristocrat valuation video would be appreciated.

[@AdventuresandUs]

Awesome that you pointed out the benefits of two different formulas with apple

[@jagulba]

I think I’m attending a course in a university... it’s perfect that you show where the formula fails and where it can be used... well done again ;)

[@LearntoInvest]

Thanks 😊 I'm glad you like it

[@YouAreJoy]

Yes, very interested. This was awesome Jimmy!

[@unbreakableer]

Always love the videos. I would definitely like to see the video are divided stocks overvalued. I feel that your videos are always packed with great information without fluff.

[@DividendIncomeBloodhound]

Alex L nailed it!

[@jeanLetourneau1]

Thank you Jimmy. Personnaly, I found this formula to sensitive to the input r and R to be used. You just demonstrate the huge impact on Fair Value estimate by changing the dividend growth rate from 5.0% to 6.%. And the impact of Required Return, say changing from 8.0% to 9.0%, is also huge. I do not buy dividend stock because I personnaly do not know how to calculate Fair Value. Does a Dividend Discount Method a better method? A video on Dividend Aristocrat will be great.

[@robertoconnor2669]

Love your idea of applying formula to the dividend aristocrats to see if they are over priced.

[@PassiveIncomeTom]

*Great explanation and examples Jimmy!* 👍

[@chlo6348]

Another great video! You made it so easy to understand. Thank you Jimmy. Btw, instead of binging on Netflix and turkey, I binge-washed a bunch of your videos on Thanksgiving break. Awesome work!

[@joshuagreenstein1438]

First and foremost, excellent video. Second, would love the breakdown of each of the individual aristocrats. Last, but much more importantly, a clear, discernible line between when and which companies to utilize DCF v. this formula other than just examples, would be appreciated! Again, great job, just subscribed, and looking forward to more content!

[@LearntoInvest]

That's a great point, I should do a video on when to use which formulas. Thanks for subscribing 🙂👍

[@letsdanceonhere]

Great as usual Jimmy and I would love to see your planned Fair Market Value vid. Thanks

[@cstewart7056]

Thanks, Jimmy! The explanation of when and when not to use this method was an excellent addition.

[@MrBAchompBAchomp]

Jimmy that would be an awesome idea! I would love to see that formula used in more real work examples!

[@richnashin5448]

Yes it would great to present a video with a list of dividend stocks like MMM, Johnson & Johnson, Atria Group etc on the over valuation of the price, thank you in advance if you could. You have an excellent way of sharing information

[@DividendIncomeBloodhound]

Rich Na'Shin i have mmm and looking at Johnson so would be interested

[@williamsmith4764]

As investors we look an many angles. Thank you for another tool in the tool chest!

[@gonzo432619]

Yes!!!! please with the all companies on the Aristocrat list

[@Mysteryqueen86]

I love the Math class today wow did I learn today. I like to see the ETF fair value.

[@zeppeinvest-stockmarketvid1441]

💸💸💸

[@Ryan-wf7sh]

Great video as always jimmy, definitely interested in seeing you analyze more dividend stocks

[@DividendIncomeBloodhound]

Completely agree

[@venom62]

Yes please do the dividend aristocrat vid. Great content as always Jimmy

[@thatsmyjam8403]

Please do your video on the dividend aristocrats ETF.

[@LearntoInvest]

Will Do!

[@MrRdiazfam1989]

Please do aristocrat valuation im loving your videos its very exciting as you teach.

[@perpetualdividends6719]

Very cool. Helpful formula

[@scottmerryman]

Yo, I found this video super helpful! If I might make a suggestion regarding production: Maybe try to keep your notes behind camera so that you avoid checking down - right. It can be a tad distracting Otherwise, super useful man. Liked and subscribed

[@hanz2lk]

Another great informative video Jimmy. Thank you!

[@silversaverg8718]

Great video, anything else you can show us is much appreciated.

[@wp4310]

Yes! Interested!

[@MinhNguyen-xv2dc]

Yes interested, but try to focus on the one that is near the fair price so we know the stocks at the right time!

[@dltyler4023]

Fricking awesome explanation. Thank you man.

[@DividendIncomeBloodhound]

dl tyler accurate!

[@davidhack2409]

Brilliant vid man! Thank you for a epic content 🙌

[@Thetatraderz]

Great way to see if dividends are safe and likely will continue to grow.

[@johnbob2871]

Great video!!!

[@cryptoinfinity3097]

super nice video, thank you!

[@sergiolopez1855]

Is there a website or something that we can use this formula by just putting the company or numbers?

[@slvfelix]

Yes, please do the video!

[@andyyu1642]

Will this formula work well on estimating REITs?

[@DanielGonzalez-ck9dx]

My thoughts exactly !

[@bryanmalcolm7737]

Do you use a specific software package to evaluate stocks?

[@baljeet1989]

Thank you . This was very informative!!

[@irmicepeterson2479]

I'm very interested in the dividend aristocrat valuation video.

[@skrapsaker2035]

Yes please! I am very interested🤗

[@davidschultz5874]

Definitely interested in seeing that video about the other dividend stocks.

[@khdsec]

Thanks Jimmy, great content Would this formula work on REIT stocks?

[@LearntoInvest]

It could, although with REITs I find it better to use price to funds from operation or better yet NAV. At some point I'll make a video on both of these topics of it helps 😁👍

[@Patrickduffy143]

Jimmy when your video pops up on my screen it’s almost like listening to here comes the Sun by The Beatles

[@LearntoInvest]

Best compliment ever!!! 🙂👍

[@georgehadley7863]

@@LearntoInvest Jimmy - You are far too young to know who the Beatles were!

[@wheatonrunner69]

Very interested in a simple dividend value for dividend aristocrat companies. Been thinking about investing in aristocrats recently but the market is near all time highs.

[@lexandersantana8089]

thanks bro, id def watch that vid for NOBL

[@wilburgordon7606]

would love to see you analyze the dividend aristocrats companies, I was thinking it as you said it!

[@DividendIncomeBloodhound]

Wilbur Gordon that would be useful!!!

[@Ich_liebte_DeutscheLand1]

Would love to see the dividend aristocrat valuation video THX

[@alexanderpike1936]

Would love to see a dividend aristocrats valuation video!

[@StuJoyce]

Hi Jimmy. So I've run this formula through BT.A stock. Do=15.4 g=5.6 r=8 works out fair value at 677.5 but stock is trading at 184. Why the massive difference? Great channel btw

[@steakcon]

Thanks Jimmy!

[@Chrisss6311]

Like like like great video please do more just like this

[@robertwills8626]

Great Video would definitely be interested in the video about aristocrats.

[@ufopiloot]

Is there a fast way to get those dividends histories for a company?

[@mindsinmotion2825]

I Am going to have to watch this a few times to fully understand.

[@lancechoo9460]

Thanks, Jimmy, for your informative videos.

[@ourielification]

I would love to know more about etf as you asked at the end

[@hauntedhouse7827]

is this the same formula as the bond discount formula?

[@shyamsuchak]

Yes please do video on dividend aristocart valuations

[@harryallenpearce89]

Finally! A video for me. *sees fair value formula* ...never mind.

[@DrThier32]

Thanks Jimmy for sharing this knowledge for ordinary folks like us. Thanks man👍🏾

[@ichoudhury007]

I would love to see fair value calculation next to all stocks in your future reviews. 😉😁

[@dashadow231]

Ok, I am now a fan

[@pranavbelgaonkar8634]

Could you use Gordon's growth model here?

[@JalapenoDNA]

Holy crap, this is what they should've taught me in highschool. Maybe I would've paid attention!! 😂😂😂

[@chadhighfill4578]

Would like to know if this formula can be used on ETFs?

[@korayhalil2155]

Can I ask where you got this formula from

[@PtearGriffin4]

Please do that video. I wish this video had MMM or jnj in it

[@BubbaBlackmon]

Jimmy , I would love to know your background. Education, employment , etc. I have my MBA in finance and I really enjoy your videos. A great refresher course on things I learned years ago.

[@GeorgeKowalski77]

Hey, Jimmy please tell me something about stock ETF HMMJ ???? should I hold or sell??

[@TwoCarGaragez]

Where does the 8% required return come from?

[@LearntoInvest]

I just picked on to illustrate the process. But using something like CAPM is likely a better step to determining a required rate of return

[@danielk7490]

Great video! Thank you very much!

[@jonathanduran5502]

Do you think this formula can work with etf dividends? Or which formula do you recommend for etfs in order to know their fair value? Thanks, great content

[@Alexandra_research]

This was really helpful!

[@MinhNguyen-xv2dc]

What company should we look to buy during the December month that historically gone up during this month ?!

[@kubismatik2]

Some people may prefer to look for stocks that go down at the moment and up in the future.

[@icarusthefly5458]

My strategy is mostly using a target dividend percentage and the stability and the trust i have in a company. A higher trust/stability means i am willing to compensate the lower dividend percentage. I want a higher percentage for companies i dont trust as much/are a bit les stable.

[@nathanielcodina4056]

Jimmy a video of fair market value for dividend aristocrats would be a great.

[@DividendIncomeBloodhound]

Got to be aware of the hype factor!

[@SergiMedina]

Yes, please, do the aristocrat valuation! But it would be nice to do it with data from the first quarter of 2020, since I see the fair value could generally benefit from that? By the way, can you recommend some webpage to find this revenue and dividend data?

[@SpeakerBuilder]

There is an alternative perspective to consider. I own commercial property that will yield 9% annual ROI after expenses, and I have $100k saved over the past few years that I am looking to invest. I purchased each of my properties for between 100k and 130k, so I could purchase another one and earn 9%. Therefore, any consideration for investing in stock must compete against this alternative. So, for me, the only acceptable dividend stocks I am willing to consider pay 10% or more in dividends. If not, I would simply look for another commercial property to buy.

[@jhtwenty]

where that 0.08 came from

[@fareedfei6793]

I'd appreciate it if anyone out can answer a question I've had for a while now: should CAPM or WACC be used as a standard expected rate of return? i've seen Jimmy used both in different evaluations.

[@christfollower58]

You use CAPM to get the cost of equity, one part of WACC

[@malloyrodriguez181]

Please do the dividend aristocrats video

[@lynnscanio5680]

I would love to see the video as well!

[@dashadow231]

Can you do a video on what you should invest in based on a possible recession?

[@LearntoInvest]

I did this video before, but I'll work on something new as well kzbin.info/www/bejne/fmamfIJ7ppp5q80

[@Edu_RJR]

if you take the under part of the formula and make it divided by 0.01 and then square the whole thing, this way you always have a positive number even if you growth is higher than required rate of return (would have to do a few adjustments then to the top part) edit: if you do [D0(1+g)]/[0.01((r-g)/0.01)²]

[@yamilethsuazo1357]

Great explanation. Thank you.

[@Zues64]

good stuff

[@MGAUT0]

make that dividend video

[@walthodgson5780]

Yes from me for that aristocrats video!!

[@archimedes7436]

Would you say this is a good analysis for reits? Can you adjust the req rate of return or should you always keep it at a certain value? Im finding for some stocks increasing the req return, increases the fair value. Is that a good thing (i think so)?