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 generated by StockNews estimates a return of positive 182.16% in comparison 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, HTGC offers a dividend yield in the top 5.2% of stocks in our set.
• In comparison to other US listed dividend yielding stocks in the Financial Services sector, the expected return of 182.16%, based on the stock's current share price and target price based on a dividend discount model, is greater than 93.23% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, Hercules Capital Inc bears a discount rate, according to our calculations, lower than 93.23% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Based on dividend growth rate, Hercules Capital Inc has been increasing its dividends at a faster rate than 61.1% of US-listed dividend-issuing stocks we observed.

HTGC Dividends vs. Peers