MarketAxess Holdings Inc. (MKTX) Dividends

MKTX 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. In the case of MKTX, the DDM model, as implemented by StockNews, implies a negative return of 49.94% relative to its current price. Digging deeper, the aspects of Marketaxess Holdings Inc's dividend discount model that we found most interesting were:

• In comparison to stocks we observe that provide shareholders with a dividend, MKTX offers a dividend yield in the bottom 0.81% of its fellow sector mates.
• 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 -49.94%, based on the stock's current share price and target price based on a dividend discount model, is greater than just 21.21% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, MKTX has a discount rate lower than just 21.21% of them (a lower discount rate is associated with lower risk).
• Based on dividend growth rate, Marketaxess Holdings Inc has been increasing its dividends at a faster rate than 87.95% of US-listed dividend-issuing stocks we observed.

MKTX Dividends vs. Peers