CTBI Price Forecast Based on Dividend Discount Model

For dividend yielding stocks, the Dividend Discount Model (DDM) is a common valuation tool; it attempts to extrapolate a fair share price based primarily on the dividend the stock provides relative to a number of other quantiative aspects of its business. In the case of CTBI, the DDM model generated by StockNews estimates a return of positive 11.91% in comparison to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Community Trust Bancorp Inc are:

• In comparison to stocks we observe that provide shareholders with a dividend, Community Trust Bancorp Inc produces a dividend yield 4.96% -- which falls in the top 24.51%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, Community Trust Bancorp Inc's expected return of 11.91% is higher than 67.06% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Community Trust Bancorp Inc bears a discount rate, according to our calculations, lower than 67.06% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• In terms of who is growing the amount of dividends they return to shareholders, CTBI boasts a higher growth rate in terms of its annual cash distributed to its owners than 30.22% of the dividend issuers in our set.

CTBI Dividends vs. Peers