NYCB 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 NYCB, the DDM model generated by StockNews estimates a return of positive 208.25% in comparison to its current price. Digging deeper, the aspects of New York Community Bancorp Inc's dividend discount model that we found most interesting were:

• As for its position relative to other Financial Services stocks that issue dividends, NYCB provides shareholders with a dividend yield greater than 93.25% such stocks.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, New York Community Bancorp Inc's expected return of 208.25% is higher than 95.04% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, New York Community Bancorp Inc bears a discount rate, according to our calculations, lower than 95.04% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• In terms of who is growing the amount of dividends they return to shareholders, NYCB boasts a higher growth rate in terms of its annual cash distributed to its owners than 8.4% of the dividend issuers in our set.

NYCB Dividends vs. Peers