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. Regarding General Dynamics Corp, the dividend discount model StockNews created for the company implies a negative return of 2.04%. To help understand and contextualize the model's evaluation of GD, investors may wish to consider are:

• As for its position relative to other Industrials stocks that issue dividends, General Dynamics Corp offers a higher dividend yield than 72.73% of them.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Industrials sector, General Dynamics Corp's expected return of -2.04% is higher than 75.62% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, General Dynamics Corp bears a discount rate, according to our calculations, lower than 75.62% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).

GD Dividends vs. Peers