GRMN 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 GRMN, the DDM model generated by StockNews estimates a return of positive 12.4% in comparison to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Garmin Ltd are:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Technology sector, Garmin Ltd's expected return of 12.4% is higher than 79.03% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, GRMN has a discount rate lower than 79.03% of them (a lower discount rate is associated with lower risk).
• Based on dividend growth rate, Garmin Ltd has been increasing its dividends at a faster rate than just 11.03% of US-listed dividend-issuing stocks we observed.

GRMN Dividends vs. Peers