CTB 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. In the case of CTB, the dividend discount model StockNews created for the company implies a negative return of 73.82%. Digging deeper, the aspects of Cooper Tire & Rubber Co's dividend discount model that we found most interesting were:

• In comparison to stocks we observe that provide shareholders with a dividend, Cooper Tire & Rubber Co produces a dividend yield 1.05% -- which falls in the bottom 17.1%.
• In terms of opportunity, CTB's provides a return of -73.82% based on the forecast of the dividend discount model we used relative to its current share price; this is a better return than just 15.46% of all stocks we measured with our dividend discount model.
• In terms of who is growing the amount of dividends they return to shareholders, CTB boasts a higher growth rate in terms of its annual cash distributed to its owners than just 10.65% of the dividend issuers in our set.

CTB Dividends vs. Peers