What assumptions are made when using dividend growth model to determine the value of a share of stock?

The dividend growth model (DGM) assumes that dividends will grow at a constant rate indefinitely, which may not reflect reality for all companies. It also assumes that the required rate of return remains stable over time and that the company will continue to pay dividends without interruption. Additionally, the model presumes that the growth rate of dividends is sustainable and aligns with the company's long-term growth prospects. These assumptions can limit the model's applicability, particularly for companies with irregular dividend policies or fluctuating growth rates.