Present Value of Stock Calculator: Zero Growth Model for Dividend Valuation

The zero-growth dividend model finds a stock’s fair price by dividing its constant dividend by your required return. For instance, a $2.40 annual dividend and a 6.8 % hurdle rate give a value of $35.29—right on your screen in a single click. About 40 % of S&P 500 firms pay stable or slowly-growing dividends (S&P Global, 2023).