BKCC 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 BKCC, the dividend discount model StockNews created for the company implies a positive return of 202.34%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for BlackRock Capital Investment Corp are:

• Relative to all dividend yielding stocks in our set, BlackRock Capital Investment Corp's dividend yield of 14.98% is in the top 2.37%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, the expected return of 202.34%, based on the stock's current share price and target price based on a dividend discount model, is greater than 95.82% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, BKCC has a discount rate lower than 95.82% of them (a lower discount rate is associated with lower risk).
• BlackRock Capital Investment Corp's dividend growth rate is higher than 4.4% of stocks in its sector (Financial Services).

BKCC Dividends vs. Peers