NTB 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 NTB, the DDM model, as implemented by StockNews, implies a positive return of 52.32% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Bank of NT Butterfield & Son Ltd are:

• Relative to all dividend yielding stocks in our set, NTB offers a dividend yield in the top 13.69% of stocks in our set.
• Beta is a measure of volatility relative to the stock market at large; when evaluated against its peers in the small-sized revenue class, Bank of NT Butterfield & Son Ltd has a beta lower than just 17.81% of such peers.
• Based on dividend growth rate, NTB boasts a higher growth rate in terms of its annual cash distributed to its owners than 87.15% of the dividend issuers in our set.

NTB Dividends vs. Peers