MBWM Price Forecast Based on Dividend Discount Model

The Dividend Discount Model (DDM) is a valuation model that attempts to determine a fair share price for a stock, based on the dividend it provides in comparison to several company-specific metrics indicative of the riskiness of the stock and the financial health of the company. As for MBWM, the dividend discount model StockNews created for the company implies a positive return of 17.66%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Mercantile Bank Corp are:

• In comparison to stocks we observe that provide shareholders with a dividend, Mercantile Bank Corp's dividend yield of 5.71% is in the top 17.51%.
• In comparison to other US listed dividend yielding stocks in the Financial Services sector, Mercantile Bank Corp's expected return of 17.66% is higher than 69.06% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, MBWM has a discount rate lower than 69.06% of them (a lower discount rate is associated with lower risk).
• Based on dividend growth rate, Mercantile Bank Corp has been increasing its dividends at a faster rate than 8.4% of US-listed dividend-issuing stocks we observed.

MBWM Dividends vs. Peers