MAIN 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 MAIN, the dividend discount model StockNews created for the company implies a positive return of 62.14%. To help understand and contextualize the model's evaluation of MAIN, investors may wish to consider are:

• Compared to other US stocks that pay a dividend, Main Street Capital CORP produces a dividend yield 8% -- which falls in the top 9.06%.
• 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 62.14%, based on the stock's current share price and target price based on a dividend discount model, is greater than 82.44% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, MAIN has a discount rate lower than 82.44% of them (a lower discount rate is associated with lower risk).
• Beta is a measure of volatility relative to the stock market at large; for MAIN, its beta is lower than merely 16.94% of stocks in the small-sized revenue class.

MAIN Dividends vs. Peers