Present Value (of your investment)

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Assuming that you invest in a stable/boring/predictable company, with consistent dividend payouts. Let's assume you keep the shares forever (or for a very long time), how much would all the future dividend payouts be worth to you today? If you can answer this question, you can then compare different companies to see which one's present value is higher to help you with an investment decision.

Luckily, this has been worked out already.

Here is the handy derivation for this very useful tool:



https://amzn.to/2RPXZt5

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