BBD Price Forecast Based on Dividend Discount Model

A technique commonly used by dividend investors to value dividend-issuing stocks is the Dividend Discount Model (DDM), which seeks to determine a fair share price based on the dividend provided by the company relative to a number of other company-specific factors. In the case of BBD, the DDM model generated by StockNews estimates a return of positive 71.84% in comparison to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Bank Bradesco are:

• As for its position relative to other Financial Services stocks that issue dividends, BBD provides shareholders with a dividend yield greater than 4.73% such stocks.
• In comparison to other US listed dividend yielding stocks in the Financial Services sector, Bank Bradesco's expected return of 71.84% is higher than 88.17% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, BBD has a discount rate lower than 88.17% of them (a lower discount rate is associated with lower risk).
• In terms of who is growing the amount of dividends they return to shareholders, BBD boasts a higher growth rate in terms of its annual cash distributed to its owners than 94.8% of the dividend issuers in our set.

BBD Dividends vs. Peers