HNI 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. In the case of HNI, the DDM model, as implemented by StockNews, implies a negative return of 32.3% relative to its current price. Digging deeper, the aspects of Hni Corp's dividend discount model that we found most interesting were:

• As for its position relative to other Industrials stocks that issue dividends, HNI provides shareholders with a dividend yield greater than 92.24% such stocks.
• Beta, which compares volatilty of an individual stock to that of the S&P 500, is lower for Hni Corp than it is for just 17.81% of other dividend issuers in the Industrials sector.
• As other dividend issuers in the Industrials sector, HNI's equity discount rate is less than just 18.72% of those stocks.

HNI Dividends vs. Peers