Question

give two opposing views on stock dividend valuation models and present your own opinions on which you might prefer and why

Answer 1

Two opposing views on stock dividend valuation model:
1. Since many companies do not provide dividends regularly and future dividends cannot be predicted , valuation of these companies cannot be done accurately. Moreover growth in dividends cannot be predicted.
2. Stock Dividend valuation method cannot be done for small fast growing companies , where companies low or zero payout ratio.

I would not prefer dividend discount valuation method, instead discount free cash flow is better method. This can be used to value all companies. Dividend discount method can be used for valuing only large corporation with stable discount growth.