create a dividend growth model.
FYI to all.
Additional valuation models will be included later down the road map. Right now, we are focusing on getting the must have features.
Must have features we need to take OSV to the next level and even higher playing field than the competition include:
Once these are complete, we'll get back to getting the other valuation methods from the spreadsheet included and then expand to new valuation models like this dividend growth model.
I currently have and use about 15 different screeners. Hopefully, they will migrate into the new v1 so we won't have to recreate them from scratch. Please advise.
That post was from 2 years ago, and the v1 screeners were launched not long after. There is no imminent large change to the screeners functionality, but if you have ideas, please let us know!
Screener is now out for members.
It's a basic version to start, but will continue to get more advanced features.
I'm revisting the models and want to know how useful the DDM is for you guys?
It has the most votes, but with only 22 people voting, it could be a false feature where the majority don't know that this thread exists.
Many companies do not offer a dividend, for which the DDM model will not work.
Why do you want it, and why do you need it?
I like that you already have available in the Screener both the current annual Dividend Yield and the 5 Yr Avg Div Yld as screening variables. Suggest adding 3 Yr Avg and 10 Yr Avg as Screener variables if not difficult to do.
After looking at Current Div Yld and 5-Yr Avg Yld, if I want to look at the Dividends Per Share trend over the past 10 years, I just go to the Income Statement data. Here's a terrific chart example for Microsoft that is already available from OSV:
For those users interested in Dividend growth rates, the OSV Screener also has variables for Dividends Paid Per Share (DPS) for (1) the past 3 Yrs Growth; (2) the past 5 Yrs Growth; (3) the past 7 Yrs Growth; and (4) the past 10 Yrs Growth.
However, it should be noted that it is unclear from the information boxes attached to these variables whether the 'Growth' in each case is (a) compound annual growth rate %; or (b) average annual growth rate %; or (c) total growth % over the number of years specified.
Also Note: there are many, many variables in OSV where the explanations in their associated information boxes need much greater clarity to facilitate user understanding of precisely what each particular variable is measuring.
FYI all growth rates under 3yr, 5yr, 7yr and 10yr are CAGR.
I'm collecting more ideas and feedback on how the layout should be.
Technically DDM is a simple model, which is the difficult part. How do you make a model that only supports companies with dividends, a worthwhile implementation that people will find useful.
1. Thanks for info in your reply about CAGR. For clarity, that should be easy to add to description bubbles (not only for the dividend growth variables, but also if it also applies to all other growth-related variables).
2. Regarding DDM specifically, I would not use it. My opinion is that 3 Valuation methods (currently DCF, Graham, and EBIT) is ideal. I would ask you to only add another model (such as DDM) if you are convinced it is better than one of your existing 3 models. If so, then replace the existing model with the better model; but again, 3 valuation models is enough.
I mean, can’t you just tell enter the dividend amount instead of the FCF when you are using the FCF discount model ? Cause even for the FCF model, I have to adjusted the FCF by taking The averages of the past few years because sometimes the FCF skyrocketed in one year and that won’t be an accurate look at the value of the company.
Cannot seem to find this yet, but am still looking.
What I have not seen is the ability to customize this and other results. Payout ratio, FCF / share diluted, and diluted EPS are happily there. The addition of debt ratios to determine the longer term viability of the current dividend and potential the dividend will grow further out than the above information would be useful.
Jae, FYI: it has been a few years since I checked this out. Well done! :-)
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