NewMarket Corp (NEU) Dividends

NEU 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. As for NEU, the DDM model, as implemented by StockNews, implies a positive return of 1.96% relative to its current price. Digging deeper, the aspects of Newmarket Corp's dividend discount model that we found most interesting were:

• As for its position relative to other Basic Materials stocks that issue dividends, NEU provides shareholders with a dividend yield greater than 74.07% such stocks.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Basic Materials sector, Newmarket Corp's expected return of 1.96% is higher than 68.15% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, NEU has a discount rate lower than 68.15% of them (a lower discount rate is associated with lower risk).
• Based on dividend growth rate, Newmarket Corp has been increasing its dividends at a faster rate than 30.82% of US-listed dividend-issuing stocks we observed.

NEU Dividends vs. Peers