CIM 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. As for CIM, the dividend discount model StockNews created for the company implies a positive return of 291.67%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Chimera Investment Corp are:

• Compared to other US stocks that pay a dividend, Chimera Investment Corp's dividend yield of 12.02% is in the top 3.04000000000001%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Real Estate sector, the expected return of 291.67%, based on the stock's current share price and target price based on a dividend discount model, is greater than 97.74% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, CIM has a discount rate lower than 97.74% of them (a lower discount rate is associated with lower risk).
• In comparison to other dividend stocks in the Real Estate sector, CIM is growing its dividends at a faster rate than about 3.59% of them.

CIM Dividends vs. Peers