Educational Development Corporation (EDUC) Dividends

EDUC 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. Regarding Educational Development Corp, the DDM model, as implemented by StockNews, implies a positive return of 121.87% relative to its current price. Digging deeper, the aspects of Educational Development Corp's dividend discount model that we found most interesting were:

• As for its position relative to other Consumer Cyclical stocks that issue dividends, EDUC provides shareholders with a dividend yield greater than 96.49% such stocks.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Consumer Cyclical sector, Educational Development Corp's expected return of 121.87% is higher than 94.74% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Educational Development Corp bears a discount rate, according to our calculations, lower than 94.74% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• A stock's beta generally indicates its volatility relative to the broader equity market; as for EDUC, approximately 88.55% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.

EDUC Dividends vs. Peers