The business model, in fact, is not unlike my own business
model as a dividend growth investor: Both are designed to generate reliable income that grows over the long term.
Not exact matches
[For mathematically inclined clients, a simplistic, but useful way to see this is to examine the
dividend discount model: Price = Dividend / (k - g) where g is the long - term growth rate of dividends and k is the long - term return required by investors, written as the sum of the risk free rate and a risk premium (k =
dividend discount
model: Price =
Dividend / (k - g) where g is the long - term growth rate of dividends and k is the long - term return required by investors, written as the sum of the risk free rate and a risk premium (k =
Dividend / (k - g) where g is the long - term
growth rate of
dividends and k is the long - term return required by
investors, written
as the sum of the risk free rate and a risk premium (k = Rf + z).
Go back to our basic business
model:
As a
dividend growth investor, your goal is to collect, over time, stocks that pay a rising stream of
dividends.
I think Mr. Money Mustache invests in index funds, but he's still a good role
model for early retirement which is usually the goal of
dividend growth investors such
as myself!
In 2 years, the UK Value
Investor Model Portfolio received a
dividend return of 7.9 %, capital gains from the
growth of the company of 33.4 %, and an additional capital gain of 5.9 %
as the shares were re-rated upwards.