OMC 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. As for OMC, the DDM model, as implemented by StockNews, implies a positive return of 23.81% relative to its current price. To help understand and contextualize the model's evaluation of OMC, investors may wish to consider are:

• In comparison to other stocks in the Consumer Cyclical sector, OMC provides shareholders with a dividend yield greater than 92.05% such stocks.
• In comparison to other US listed dividend yielding stocks in the Consumer Cyclical sector, the expected return of 23.81%, based on the stock's current share price and target price based on a dividend discount model, is greater than 88.74% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, Omnicom Group Inc bears a discount rate, according to our calculations, lower than 88.74% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Omnicom Group Inc's dividend growth rate is greater than just 22.77% of its fellow large-sized market cap stocks that issue dividends.

OMC Dividends vs. Peers