NVEC 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 NVEC, the dividend discount model StockNews created for the company implies a positive return of 100.78%. To help understand and contextualize the model's evaluation of NVEC, investors may wish to consider are:

• Relative to all dividend yielding stocks in our set, Nve Corp produces a dividend yield 7.59% -- which falls in the top 7.47%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Technology sector, the expected return of 100.78%, based on the stock's current share price and target price based on a dividend discount model, is greater than 92.06% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, Nve Corp bears a discount rate, according to our calculations, lower than 92.06% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Beta tells us how volatile a stock's price is relative to the broader equity index; as for NVEC, approximately 67.41% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.

NVEC Dividends vs. Peers