what is the 25 dividend rule 
if a dividend will be high the price of the stock may fall by the value of the dividend on the ex dividend date the 25 dividend rule states that if the dividend is 25 or more than the stock s value then the ex dividend date will be deferred to one business day after the dividend is paid 9the bottom linethe dividend discount model can help investors pick stocks helping to determine whether a stock is overbought or oversold even when comparing investments across different sectors the model is best used for stocks with a long dividend history and is not as suitable for ones with a short dividend history or no dividend history at all as with any investment a multitude of factors should be evaluated before finalizing a decision 