OFC 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 Corporate Office Properties Trust, the DDM model, as implemented by StockNews, implies a negative return of 3.75% relative to its current price. Digging deeper, the aspects of Corporate Office Properties Trust's dividend discount model that we found most interesting were:

• In comparison to stocks we observe that provide shareholders with a dividend, Corporate Office Properties Trust produces a dividend yield 4.22% -- which falls in the top 21.69%.
• Corporate Office Properties Trust has annual revenue of approximately $603 million; this puts it in the small-sized revenue class -- where its dividend growth rate surpasses that of 29.93% of US-listed, dividend-issuing stocks in the same revenue class.
• OFC's market cap of approximately $3 billion makes it a mid-sized market cap company; out of dividend issuers in this group, the investment opportunity based on the difference between its current share price and its forecasted DDM value is greater than 70% of them.

OFC Dividends vs. Peers