BBD 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 BBD, the DDM model, as implemented by StockNews, implies a positive return of 141.59% relative to its current price. To help understand and contextualize the model's evaluation of BBD, investors may wish to consider are:

• In comparison to other stocks in the Financial Services sector, BBD provides shareholders with a dividend yield greater than 9.34% such stocks.
• In comparison to other US listed dividend yielding stocks in the Financial Services sector, Bank Bradesco's expected return of 141.59% is higher than 91.25% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, BBD has a discount rate lower than 91.25% of them (a lower discount rate is associated with lower risk).
• BBD's annual revenue, now at roughly $14 billion US dollars, puts it in the large-sized revenue class -- where its dividend growth rate surpasses that of 92.38% of US-listed, dividend-issuing stocks in the same revenue class.

BBD Dividends vs. Peers