ACCO Price Forecast Based on Dividend Discount Model

For dividend yielding stocks, the Dividend Discount Model (DDM) is a common valuation tool; it attempts to extrapolate a fair share price based primarily on the dividend the stock provides relative to a number of other quantiative aspects of its business. In the case of ACCO, the dividend discount model StockNews created for the company implies a negative return of 0.18%. Digging deeper, the aspects of ACCO BRANDS Corp's dividend discount model that we found most interesting were:

• In comparison to stocks we observe that provide shareholders with a dividend, ACCO BRANDS Corp produces a dividend yield 4.38% -- which falls in the top 30.29%.
• In comparison to other US listed dividend yielding stocks in the Industrials sector, the expected return of -0.18%, based on the stock's current share price and target price based on a dividend discount model, is greater than 79.72% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, ACCO has a discount rate lower than 79.72% of them (a lower discount rate is associated with lower risk).
• Beta, a measure of volatility relative to the stock market overall, is lower for ACCO than it is for 63.59% of other equities in the Industrials sector that also issue dividends.

ACCO Dividends vs. Peers