Cullen/Frost Bankers, Inc. (CFR) Dividends

CFR Price Forecast Based on Dividend Discount Model

The Dividend Discount Model (DDM) is a valuation model that attempts to determine a fair share price for a stock, based on the dividend it provides in comparison to several company-specific metrics indicative of the riskiness of the stock and the financial health of the company. Regarding Cullen/Frost Bankers Inc, the dividend discount model StockNews created for the company implies a negative return of 39.74%. Digging deeper, the aspects of Cullen/Frost Bankers Inc's dividend discount model that we found most interesting were:

• 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 -39.74%, based on the stock's current share price and target price based on a dividend discount model, is greater than 28.02% of the DDM-forecasted return of its its sector peers.
• In comparison to other stocks in the small-sized revenue class, its discount rate is lower than that of 73.74% of dividend stocks in the same revenue class (a low discount rate is associated with lower risk).
• Compared to all dividend issuing stocks in our set, Cullen/Frost Bankers Inc bears a discount rate, according to our calculations, lower than 28.02% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• A stock's beta generally indicates its volatility relative to the broader equity market; for Cullen/Frost Bankers Inc, its beta is lower than merely 23.71% of dividend issuing stocks we observed.

CFR Dividends vs. Peers