OCFC 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 OCFC, the DDM model, as implemented by StockNews, implies a positive return of 8.86% relative to its current price. To help understand and contextualize the model's evaluation of OCFC, investors may wish to consider are:

• Relative to all dividend yielding stocks in our set, Oceanfirst Financial Corp produces a dividend yield 3.97% -- which falls in the top 25.42%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, the expected return of 8.86%, based on the stock's current share price and target price based on a dividend discount model, is greater than 74.07% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, Oceanfirst Financial Corp bears a discount rate, according to our calculations, lower than 74.07% 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, Oceanfirst Financial Corp has been increasing its dividends at a faster rate than 81.19% of US-listed dividend-issuing stocks we observed.

OCFC Dividends vs. Peers