IP 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. Regarding International Paper Co, the dividend discount model StockNews created for the company implies a positive return of 17.74%. To help understand and contextualize the model's evaluation of IP, investors may wish to consider are:

• Compared to other US stocks that pay a dividend, IP offers a dividend yield in the top 26.4% of stocks in our set.
• In comparison to other US listed dividend yielding stocks in the Consumer Cyclical sector, the expected return of 17.74%, based on the stock's current share price and target price based on a dividend discount model, is greater than 86.49% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, International Paper Co bears a discount rate, according to our calculations, lower than 86.49% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• The International Paper Co's dividend growth rate is greater than 28.16% of dividend issuers in the large-sized market cap class, where it lives.

IP Dividends vs. Peers