Lam Research Corporation (LRCX) Dividends

LRCX 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 LRCX, the DDM model, as implemented by StockNews, implies a negative return of 80.71% relative to its current price. Digging deeper, the aspects of Lam Research Corp's dividend discount model that we found most interesting were:

• LRCX's annual revenue, now at roughly $11 billion US dollars, classifies the stock in the large-sized revenue class -- and relative to other dividend issuers in this class, the growth rate of its dividend is greater than that of 95.36% of them.
• Beta, a measure of volatility relative to the stock market overall, is lower for LRCX than it is for 5.56% of other equities in the Technology sector that also issue dividends.
• As other dividend issuers in the Technology sector, LRCX's equity discount rate is less than 7.14% of those stocks.

LRCX Dividends vs. Peers