Marsh & McLennan Cos. (MMC) Dividends

MMC 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 MMC, the DDM model, as implemented by StockNews, implies a negative return of 42.26% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Marsh & Mclennan Companies Inc are:

• Compared to other US stocks that pay a dividend, Marsh & Mclennan Companies Inc produces a dividend yield 1.32% -- which falls in the bottom 24.23%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, Marsh & Mclennan Companies Inc's expected return of -42.26% is higher than 25.49% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, Marsh & Mclennan Companies Inc bears a discount rate, according to our calculations, lower than 25.49% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• MMC's annual revenue, now at roughly $20 billion US dollars, classifies the stock in the large-sized revenue class -- and relative to other dividend issuers in this class, the growth rate of its dividend is greater than that of 62.79% of them.

MMC Dividends vs. Peers