KNOP 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. As for KNOP, the dividend discount model StockNews created for the company implies a positive return of 217.92%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for KNOT Offshore Partners LP are:

• Compared to other US stocks that pay a dividend, KNOT Offshore Partners LP produces a dividend yield 13.38% -- which falls in the top 1.2%.
• In comparison to other US listed dividend yielding stocks in the Industrials sector, the expected return of 217.92%, based on the stock's current share price and target price based on a dividend discount model, is greater than 95.89% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, KNOT Offshore Partners LP bears a discount rate, according to our calculations, lower than 95.89% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• In comparison to other dividend stocks in the Industrials sector, KNOP is growing its dividends at a faster rate than about 72.48% of them.

KNOP Dividends vs. Peers