BOTJ 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 Bank Of The James Financial Group Inc, the DDM model, as implemented by StockNews, implies a positive return of 4.95% relative to its current price. Digging deeper, the aspects of Bank Of The James Financial Group Inc's dividend discount model that we found most interesting were:

• A stock's beta generally indicates its volatility relative to the broader equity market; as for BOTJ, approximately 97.16% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.
• In terms of who is growing the amount of dividends they return to shareholders, Bank Of The James Financial Group Inc has been increasing its dividends at a faster rate than 71.73% of US-listed dividend-issuing stocks we observed.
• As other dividend issuers in the Financial Services sector, BOTJ's equity discount rate is less than 91.93% of those stocks.

BOTJ Dividends vs. Peers