Magyar Bancorp, Inc. (MGYR) Dividends

MGYR 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. In the case of MGYR, the DDM model generated by StockNews estimates a return of negative 88.4% in comparison to its current price. To help understand and contextualize the model's evaluation of MGYR, investors may wish to consider are:

• 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 -88.4%, based on the stock's current share price and target price based on a dividend discount model, is greater than just 2.33% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, MGYR has a discount rate lower than just 2.33% of them (a lower discount rate is associated with lower risk).
• Beta tells us how volatile a stock's price is relative to the broader equity index; for Magyar Bancorp Inc, its beta is lower than 99.65% of dividend issuing stocks we observed.

MGYR Dividends vs. Peers