Discover Financial Services (DFS) Dividends

DFS 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 DFS, the DDM model, as implemented by StockNews, implies a negative return of 75.47% relative to its current price. To help understand and contextualize the model's evaluation of DFS, investors may wish to consider are:

• In comparison to other US listed dividend yielding stocks in the Financial Services sector, the expected return of -75.47%, based on the stock's current share price and target price based on a dividend discount model, is greater than 9.87% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Discover Financial Services bears a discount rate, according to our calculations, lower than 9.87% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Beta tells us how volatile a stock's price is relative to the broader equity index; for Discover Financial Services, its beta is lower than 6.83% of dividend issuing stocks we observed.
• In comparison to its fellow dividend issuing stocks in the Financial Services sector, DFS's equity discount rate is less than 6.45% of those stocks.

DFS Dividends vs. Peers