NEWT 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 NEWT, the DDM model generated by StockNews estimates a return of positive 185.41% in comparison to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Newtek Business Services Corp are:

• Compared to other US stocks that pay a dividend, NEWT offers a dividend yield in the top 3.16% of stocks in our set.
• 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 185.41%, based on the stock's current share price and target price based on a dividend discount model, is greater than 93.25% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, NEWT has a discount rate lower than 93.25% of them (a lower discount rate is associated with lower risk).

NEWT Dividends vs. Peers