CINF 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. As for CINF, the DDM model generated by StockNews estimates a return of negative 21.75% in comparison to its current price. Digging deeper, the aspects of Cincinnati Financial Corp's dividend discount model that we found most interesting were:

• The amount of revenue Cincinnati Financial Corp earns annually is around 6 billion; relative to its peers in the mid-sized revenue class, it has a dividend yield higher than 65.99%.
• In terms of who is growing the amount of dividends they return to shareholders, Cincinnati Financial Corp has been increasing its dividends at a faster rate than 30.04% of US-listed dividend-issuing stocks we observed.
• In comparison to its fellow dividend issuing stocks in the Financial Services sector, CINF's equity discount rate is less than 74.95% of those stocks.

CINF Dividends vs. Peers