HRZN 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 HRZN, the DDM model generated by StockNews estimates a return of positive 92.95% in comparison to its current price. To help understand and contextualize the model's evaluation of HRZN, investors may wish to consider are:

• In comparison to stocks we observe that provide shareholders with a dividend, Horizon Technology Finance Corp's dividend yield of 9.4% is in the top 4.16%.
• In comparison to other US listed dividend yielding stocks in the Financial Services sector, the expected return of 92.95%, based on the stock's current share price and target price based on a dividend discount model, is greater than 90.35% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, Horizon Technology Finance Corp bears a discount rate, according to our calculations, lower than 90.35% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).

HRZN Dividends vs. Peers