CMP 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 Compass Minerals International Inc, the DDM model, as implemented by StockNews, implies a positive return of 21.81% relative to its current price. Digging deeper, the aspects of Compass Minerals International Inc's dividend discount model that we found most interesting were:

• Relative to all dividend yielding stocks in our set, CMP offers a dividend yield in the top 18.23% of stocks in our set.
• In comparison to other US listed dividend yielding stocks in the Basic Materials sector, Compass Minerals International Inc's expected return of 21.81% is higher than 81.2% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, Compass Minerals International Inc bears a discount rate, according to our calculations, lower than 81.2% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• CMP's annual revenue, now at roughly $1 billion US dollars, puts it in the small-sized revenue class -- where its dividend growth rate surpasses that of 30.18% of US-listed, dividend-issuing stocks in the same revenue class.

CMP Dividends vs. Peers