HMC 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. In the case of HMC, the dividend discount model StockNews created for the company implies a positive return of 82.64%. To help understand and contextualize the model's evaluation of HMC, investors may wish to consider are:

• In comparison to other US listed dividend yielding stocks in the Consumer Cyclical sector, Honda Motor Co Ltd's expected return of 82.64% is higher than 89.86% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, Honda Motor Co Ltd bears a discount rate, according to our calculations, lower than 89.86% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Honda Motor Co Ltd has annual revenue of approximately $124 billion; this classifies the stock in the large-sized revenue class -- and relative to other dividend issuers in this class, the growth rate of its dividend is greater than that of only 11.39% of them.

HMC Dividends vs. Peers