Alliance Resource Partners L.P. (ARLP) Dividends

ARLP 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 ARLP, the DDM model generated by StockNews estimates a return of positive 205.77% in comparison to its current price. To help understand and contextualize the model's evaluation of ARLP, investors may wish to consider are:

• ARLP generates about 2 billion US dollars in revenue annually; relative to its peers in the mid-sized revenue class, it has a dividend yield higher than 94.55%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Basic Materials sector, Alliance Resource Partners Lp's expected return of 205.77% is higher than 84.44% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, ARLP has a discount rate lower than 84.44% of them (a lower discount rate is associated with lower risk).
• Based on dividend growth rate, Alliance Resource Partners Lp has been increasing its dividends at a faster rate than 2.81% of US-listed dividend-issuing stocks we observed.

ARLP Dividends vs. Peers