O 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. Regarding Realty Income Corp, the DDM model, as implemented by StockNews, implies a negative return of 0.19% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Realty Income Corp are:

• Given its market cap of around 20 billion US dollars, this puts the stock in the large-sized market cap class, and its dividend yield is greater than 80% of dividend yielding stocks in the same market cap class.
• With a market cap of roughly $20 billion, O is in the large-sized market cap class; amongst this group of stocks, its equity discount rate is lower than only 23.4% of them.
• Beta tells us how volatile a stock's price is relative to the broader equity index; as for O, approximately only 24.57% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.

O Dividends vs. Peers