MFC 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. Regarding Manulife Financial Corp, the dividend discount model StockNews created for the company implies a positive return of 55.56%. To help understand and contextualize the model's evaluation of MFC, investors may wish to consider are:

• Relative to all dividend yielding stocks in our set, Manulife Financial Corp produces a dividend yield 6.3% -- which falls in the top 15.21%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, Manulife Financial Corp's expected return of 55.56% is higher than 81.15% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, MFC has a discount rate lower than 81.15% of them (a lower discount rate is associated with lower risk).
• Beta, a measure of volatility relative to the stock market overall, is lower for Manulife Financial Corp than it is for only 19.25% of other dividend issuers in the Financial Services sector.

MFC Dividends vs. Peers