ADTN 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. As for ADTN, the dividend discount model StockNews created for the company implies a positive return of 71.7%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Adtran Inc are:

• In comparison to other US listed dividend yielding stocks in the Technology sector, the expected return of 71.7%, based on the stock's current share price and target price based on a dividend discount model, is greater than 83.33% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, ADTN has a discount rate lower than 83.33% of them (a lower discount rate is associated with lower risk).
• Amongst its dividend-issuing peers in the mid-sized market cap category, ADTN's beta -- a measure of volatility relative to the market at large -- is lower than 89.25% of them.
• Based on dividend growth rate, Adtran Inc has been increasing its dividends at a faster rate than only 10.05% of US-listed dividend-issuing stocks we observed.

ADTN Dividends vs. Peers