Arthur J. Gallagher & Co. (AJG) Dividends

AJG 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 AJG, the DDM model, as implemented by StockNews, implies a negative return of 58.18% relative to its current price. To help understand and contextualize the model's evaluation of AJG, investors may wish to consider are:

• Compared to other US stocks that pay a dividend, Arthur J Gallagher & Co's dividend yield of 1.24% is in the bottom 22.55%.
• In terms of opportunity, AJG's provides a return of -58.18% based on the forecast of the dividend discount model we used relative to its current share price; this is a better return than 26.26% of all stocks we measured with our dividend discount model.
• Beta, a measure of volatility relative to the stock market overall, is lower for Arthur J Gallagher & Co than it is for 29.96% of other dividend issuers in the Financial Services sector.

AJG Dividends vs. Peers