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. As for IP, the dividend discount model StockNews created for the company implies a positive return of 73.61%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for International Paper Co are:

• Relative to all dividend yielding stocks in our set, International Paper Co produces a dividend yield 6.5% -- which falls in the top 24.95%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Consumer Cyclical sector, International Paper Co's expected return of 73.61% is higher than 72.73% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, International Paper Co bears a discount rate, according to our calculations, lower than 72.73% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• International Paper Co's dividend growth rate is greater than 32.91% of its fellow large-sized market cap stocks that issue dividends.

IP Dividends vs. Peers