HRB Price Forecast Based on Dividend Discount Model

The Dividend Discount Model (DDM) is a valuation model that attempts to determine a fair share price for a stock, based on the dividend it provides in comparison to several company-specific metrics indicative of the riskiness of the stock and the financial health of the company. As for HRB, the DDM model, as implemented by StockNews, implies a positive return of 23.2% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for H&R Block Inc are:

• As for its position relative to other Consumer Cyclical stocks that issue dividends, HRB provides shareholders with a dividend yield greater than 98.68% such stocks.
• In comparison to other US listed dividend yielding stocks in the Consumer Cyclical sector, the expected return of 23.2%, based on the stock's current share price and target price based on a dividend discount model, is greater than 89.4% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, H&R Block Inc bears a discount rate, according to our calculations, lower than 89.4% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• H&R Block Inc's dividend growth rate is greater than just 11.98% of dividend issuers in the large-sized market cap class, where it lives.

HRB Dividends vs. Peers