A perpetuity is an investment asset that pays a stated return for an infinite amount of time. An annuity with no termination date is an example of a perpetuity.

Sadly, perpetuities are extremely rare in modern times. However, the abstract concept of perpetuity lives on in the financial world and the field of economics.

In finance, perpetuity is defined as a continuous stream of identical cash flows with no end. The concept of perpetuity is used in several financial theories, such as in the dividend discount model (DDM)