HBI 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. Regarding Hanesbrands Inc, the DDM model, as implemented by StockNews, implies a negative return of 5.09% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Hanesbrands Inc are:

• As for its position relative to other Consumer Cyclical stocks that issue dividends, HBI provides shareholders with a dividend yield greater than 83.33% such stocks.
• In comparison to other US listed dividend yielding stocks in the Consumer Cyclical sector, the expected return of -5.09%, based on the stock's current share price and target price based on a dividend discount model, is greater than 77.78% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, HBI has a discount rate lower than 77.78% of them (a lower discount rate is associated with lower risk).
• In comparison to other dividend stocks in the Consumer Cyclical sector, HBI is growing its dividends at a faster rate than about 61.7% of them.

HBI Dividends vs. Peers