ODC 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 ODC, the DDM model, as implemented by StockNews, implies a positive return of 8.18% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Oil-Dri Corp of America are:

• In comparison to other US listed dividend yielding stocks in the Basic Materials sector, the expected return of 8.18%, based on the stock's current share price and target price based on a dividend discount model, is greater than 74.36% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Oil-Dri Corp of America bears a discount rate, according to our calculations, lower than 74.36% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• With a market cap of roughly $265 million, ODC is in the small-sized market cap class; here, it has a lower equity discount rate than 86.96% of stocks.
• A stock's beta generally indicates its volatility relative to the broader equity market; as for ODC, approximately 86.87% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.

ODC Dividends vs. Peers