The Present Value of a Stock with no growth is a theoretical approach to valuing stock whereby the dividends per period are divided by the required return per period.
Where:
The present value of a stock is broadly considered the sum of the discounted future cash flows. Dividends are considered the future cash flows as the appreciation of a stock is not realized unless sold. Since the stock is held with no maturity date, one could consider a stock to be a perpetuity, in that its dividends are to be received infinitely.