Perpetual: Investors receive a fixed
dividend in perpetuity or until redeemed by the issuer.
Perpetual preferred - pay a fixed
dividend in perpetuity (or until the issuer redeems them).
Not exact matches
Where: D = Expected
dividend per share one year from now k = Required rate of return for equity investor G = Growth rate
in dividends (
in perpetuity)
ARS are long - term bonds or preferred stock; therefore, ARS may be owned and pay coupons or
dividends until the final maturity or
in perpetuity to the extent that the issuer can,
in fact, pay coupons or
dividends.
Either the Treasury will have to give up a very valuable
perpetuity received
in dividends, or investors will have to beat the government
in court.
For example, a multi-stage DDM may predict that a company will have a
dividend that grows at 5 % for seven years, 3 % for the following three years and then at 2 %
in perpetuity.
4)
Dividend income streams last
in perpetuity.