GPC 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. As for GPC, the DDM model generated by StockNews estimates a return of negative 16.36% in comparison to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Genuine Parts Co are:

• As for its position relative to other Consumer Cyclical stocks that issue dividends, Genuine Parts Co offers a higher dividend yield than 86.67% of them.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Consumer Cyclical sector, Genuine Parts Co's expected return of -16.36% is higher than 78% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Genuine Parts Co bears a discount rate, according to our calculations, lower than 78% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Genuine Parts Co's dividend growth rate is greater than 33.54% of its fellow large-sized market cap stocks that issue dividends.

GPC Dividends vs. Peers