Mercury General Corporation (MCY) Dividends

MCY 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 MCY, the DDM model generated by StockNews estimates a return of positive 1268.28% in comparison to its current price. Digging deeper, the aspects of Mercury General Corp'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 Financial Services sector, Mercury General Corp's expected return of 1268.28% is higher than 95.91% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, MCY has a discount rate lower than 95.91% of them (a lower discount rate is associated with lower risk).
• Amongst its dividend-issuing peers in the mid-sized market cap category, MCY's beta -- a measure of volatility relative to the market at large -- is lower than 93.48% of them.
• In comparison to its fellow dividend issuing stocks in the Financial Services sector, Mercury General Corp has an equity discount rate lower than 96.89% of them.

MCY Dividends vs. Peers