NWBI Price Forecast Based on Dividend Discount Model

For dividend yielding stocks, the Dividend Discount Model (DDM) is a common valuation tool; it attempts to extrapolate a fair share price based primarily on the dividend the stock provides relative to a number of other quantiative aspects of its business. As for NWBI, the DDM model, as implemented by StockNews, implies a positive return of 144.18% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Northwest Bancshares Inc are:

• As for its position relative to other Financial Services stocks that issue dividends, NWBI provides shareholders with a dividend yield greater than 92.81% such stocks.
• In comparison to other US listed dividend yielding stocks in the Financial Services sector, Northwest Bancshares Inc's expected return of 144.18% is higher than 91.22% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Northwest Bancshares Inc bears a discount rate, according to our calculations, lower than 91.22% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Based on dividend growth rate, Northwest Bancshares Inc has been increasing its dividends at a faster rate than 5.93% of US-listed dividend-issuing stocks we observed.

NWBI Dividends vs. Peers