HTGC 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 HTGC, the DDM model, as implemented by StockNews, implies a positive return of 130.44% relative to its current price. Digging deeper, the aspects of Hercules Capital Inc's dividend discount model that we found most interesting were:

• Compared to other US stocks that pay a dividend, Hercules Capital Inc's dividend yield of 8.88% is in the top 5.66%.
• In comparison to other US listed dividend yielding stocks in the Financial Services sector, Hercules Capital Inc's expected return of 130.44% is higher than 93.49% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Hercules Capital Inc bears a discount rate, according to our calculations, lower than 93.49% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Based on dividend growth rate, HTGC boasts a higher growth rate in terms of its annual cash distributed to its owners than 70.22% of the dividend issuers in our set.

HTGC Dividends vs. Peers