DLX 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 DLX, the DDM model generated by StockNews estimates a return of negative 11.81% in comparison to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Deluxe Corp are:

• As for its position relative to other Consumer Cyclical stocks that issue dividends, Deluxe Corp offers a higher dividend yield than 92.67% of them.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Consumer Cyclical sector, the expected return of -11.81%, based on the stock's current share price and target price based on a dividend discount model, is greater than 82% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, DLX has a discount rate lower than 82% of them (a lower discount rate is associated with lower risk).
• In terms of who is growing the amount of dividends they return to shareholders, Deluxe Corp has been increasing its dividends at a faster rate than merely 12.29% of US-listed dividend-issuing stocks we observed.

DLX Dividends vs. Peers