GD 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 GD, the DDM model generated by StockNews estimates a return of positive 2.81% in comparison to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for General Dynamics Corp are:

• As for its position relative to other Industrials stocks that issue dividends, General Dynamics Corp offers a higher dividend yield than 83.03% of them.
• In comparison to other US listed dividend yielding stocks in the Industrials sector, the expected return of 2.81%, based on the stock's current share price and target price based on a dividend discount model, is greater than 84.86% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, GD has a discount rate lower than 84.86% of them (a lower discount rate is associated with lower risk).

GD Dividends vs. Peers