ISBC 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 ISBC, the DDM model, as implemented by StockNews, implies a negative return of 11.96% relative to its current price. Digging deeper, the aspects of Investors Bancorp Inc's dividend discount model that we found most interesting were:

• Relative to all dividend yielding stocks in our set, ISBC offers a dividend yield in the top 18.17% of stocks in our set.
• ISBC's market cap of approximately $3 billion makes it a mid-sized market cap company; out of dividend issuers in this group, the investment opportunity based on the difference between its current share price and its forecasted DDM value is greater than 66.22% of them.
• In terms of who is growing the amount of dividends they return to shareholders, Investors Bancorp Inc has been increasing its dividends at a faster rate than 72.85% of US-listed dividend-issuing stocks we observed.

ISBC Dividends vs. Peers