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 DDM model generated by StockNews estimates a return of positive 5.3% in comparison to its current price. 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, IP offers a dividend yield in the top 23.19% of stocks in our set.
• 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 5.3% is higher than 87.33% of its fellow sector mates.
• 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 87.33% 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 29.04% of its fellow large-sized market cap stocks that issue dividends.

IP Dividends vs. Peers