Discover Financial Services (DFS) Dividends

DFS Price Forecast Based on Dividend Discount Model

The Dividend Discount Model (DDM) is a valuation model that attempts to determine a fair share price for a stock, based on the dividend it provides in comparison to several company-specific metrics indicative of the riskiness of the stock and the financial health of the company. As for DFS, the DDM model generated by StockNews estimates a return of negative 63.37% in comparison to its current price. To help understand and contextualize the model's evaluation of DFS, investors may wish to consider are:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, Discover Financial Services's expected return of -63.37% is higher than just 14.79% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, DFS has a discount rate lower than just 14.79% of them (a lower discount rate is associated with lower risk).
• Beta tells us how volatile a stock's price is relative to the broader equity index; as for DFS, approximately just 10.32% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.
• As other dividend issuers in the Financial Services sector, Discover Financial Services has an equity discount rate lower than just 11.28% of them.

DFS Dividends vs. Peers