BLK 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. Regarding BlackRock Inc, the DDM model, as implemented by StockNews, implies a negative return of 51.55% relative to its current price. Digging deeper, the aspects of BlackRock Inc's dividend discount model that we found most interesting were:

• In comparison to other stocks in the Financial Services sector, BlackRock Inc offers a higher dividend yield than 27.5% of them.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, BlackRock Inc's expected return of -51.55% is higher than 29.67% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, BlackRock Inc bears a discount rate, according to our calculations, lower than 29.67% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Amongst its dividend-issuing peers in the large-sized market cap category, BLK's beta -- a measure of volatility relative to the market at large -- is lower than 32.77% of them.

BLK Dividends vs. Peers