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 dividend discount model StockNews created for the company implies a negative return of 5.52%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Garmin Ltd are:

• In comparison to other US listed dividend yielding stocks in the Technology sector, the expected return of -5.52%, based on the stock's current share price and target price based on a dividend discount model, is greater than 75.4% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, GRMN has a discount rate lower than 75.4% of them (a lower discount rate is associated with lower risk).
• A stock's beta generally indicates its volatility relative to the broader equity market; for Garmin Ltd, its beta is lower than 79.28% of dividend issuing stocks we observed.

GRMN Dividends vs. Peers