Interestingly, if over the course of the forecast horizon, they go up and then revert back to where they are today, the effect on the return will actually be negative, because there will be no net change in valuation, but some of the ensuing dividends will have been
reinvested at higher valuations than those available today.
At that point, I'll have to decide whether it's fairly valued — or whether management will
reinvest cash & ultimately raise RoE back to historic levels (20 %, for example), which would obviously justify a far
higher valuation.