ISBC Price Forecast Based on Dividend Discount Model

For dividend yielding stocks, the Dividend Discount Model (DDM) is a common valuation tool; it attempts to extrapolate a fair share price based primarily on the dividend the stock provides relative to a number of other quantiative aspects of its business. In the case of ISBC, the DDM model, as implemented by StockNews, implies a positive return of 49.51% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Investors Bancorp Inc are:

• Compared to other US stocks that pay a dividend, ISBC offers a dividend yield in the top 13.83% of stocks in our set.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, the expected return of 49.51%, based on the stock's current share price and target price based on a dividend discount model, is greater than 80.44% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, Investors Bancorp Inc bears a discount rate, according to our calculations, lower than 80.44% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Based on dividend growth rate, ISBC boasts a higher growth rate in terms of its annual cash distributed to its owners than 73.33% of the dividend issuers in our set.

ISBC Dividends vs. Peers