Dividend discount pricing theory predates Graham and Dodd’s canonical statement.

Evidence

Thus Robert G. Wiese of Scudder, Stevens & Clark wrote in 1930: “Theoretically, the proper price of any security, whether a stock or a bond, is the sum of all future income payments discounted at the current rate of interest in order to arrire at the present value” (Wiese 1930, p. 5). Williams quoted Wiese’s article to this effect (Williams 1938, p. 55). — Donald MacKenzie, An Engine, Not a Camera, 1428

Categorization

• XREF: Connects to the intellectual lineage the book traces for valuation models — origins before the canonical texts. — connects to: The dividend discount model already anticipated the Miller-Modigliani irrelevance critique. — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 204; Futures pricing relationships predate formal finance theory — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 779

Broader Connections

• Futures pricing relationships predate formal finance theory #expands (0.85) — Donald MacKenzie, An Engine, Not a Camera, 779