CATY 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 CATY, the dividend discount model StockNews created for the company implies a negative return of 10.91%. Digging deeper, the aspects of Cathay General Bancorp's dividend discount model that we found most interesting were:

• In comparison to stocks we observe that provide shareholders with a dividend, Cathay General Bancorp produces a dividend yield 4.27% -- which falls in the top 22.98%.
• Beta is a measure of how volatile a stock is relative to the S&P 500; for CATY, its beta is lower than 28.65% of stocks in the small-sized revenue class.
• In terms of who is growing the amount of dividends they return to shareholders, CATY boasts a higher growth rate in terms of its annual cash distributed to its owners than 79.55% of the dividend issuers in our set.

CATY Dividends vs. Peers