Home Depot Inc. (HD) Dividends

HD 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. As for HD, the DDM model, as implemented by StockNews, implies a negative return of 1.82% relative to its current price. To help understand and contextualize the model's evaluation of HD, investors may wish to consider are:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Consumer Cyclical sector, the expected return of -1.82%, based on the stock's current share price and target price based on a dividend discount model, is greater than 73.68% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, HD has a discount rate lower than 73.68% of them (a lower discount rate is associated with lower risk).
• Based on dividend growth rate, Home Depot Inc has been increasing its dividends at a faster rate than 78.15% of US-listed dividend-issuing stocks we observed.
• In comparison to its fellow dividend issuing stocks in the Consumer Cyclical sector, HD's equity discount rate is less than 79.53% of those stocks.

HD Dividends vs. Peers