[Verse 1] Companies shower cash like autumn rain Dividends flowing to shareholders' gain But what's a stock worth when you count each drop? Time to learn the model that never stops Present value magic, discount the stream Turn future payments into today's dream [Chorus] D-D-M, Dividend Discount Model D over R minus G, that's the formula Dividend divided by required rate Minus growth percentage, calculate Gordon's Growth Model when payments climb steady Present value wisdom, are you ready? [Verse 2] Required return sits in denominator Growth rate subtracts like a calculator If growth exceeds return, the math goes wild Negative denominators can't be reconciled Stable growing companies fit this frame Mature dividend payers play this game [Chorus] D-D-M, Dividend Discount Model D over R minus G, that's the formula Dividend divided by required rate Minus growth percentage, calculate Gordon's Growth Model when payments climb steady Present value wisdom, are you ready? [Bridge] Coca-Cola, Procter Gamble too Steady growers, DDM's for you High-tech rockets with erratic pay Need different models another day When dividends march in predictable time Gordon's equation works sublime [Chorus] D-D-M, Dividend Discount Model D over R minus G, that's the formula Dividend divided by required rate Minus growth percentage, calculate Gordon's Growth Model when payments climb steady Present value wisdom, are you ready? [Outro] Next year's dividend in the numerator Discount rate minus growth denominator Intrinsic value crystal clear DDM basics now you hear
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