LECO 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 LECO, the dividend discount model StockNews created for the company implies a negative return of 33.56%. Digging deeper, the aspects of Lincoln Electric Holdings Inc's dividend discount model that we found most interesting were:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Industrials sector, the expected return of -33.56%, based on the stock's current share price and target price based on a dividend discount model, is greater than 68.49% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Lincoln Electric Holdings Inc bears a discount rate, according to our calculations, lower than 68.49% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Compared to other dividend issuers in the mid-sized market cap category, LECO has a beta lower than 78.88% of them.

LECO Dividends vs. Peers