OMF 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 OMF, the dividend discount model StockNews created for the company implies a positive return of 129.68%. To help understand and contextualize the model's evaluation of OMF, investors may wish to consider are:

• In comparison to other US listed dividend yielding stocks in the Financial Services sector, the expected return of 129.68%, based on the stock's current share price and target price based on a dividend discount model, is greater than 90.28% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, OMF has a discount rate lower than 90.28% of them (a lower discount rate is associated with lower risk).
• A stock's beta generally indicates its volatility relative to the broader equity market; as for OMF, approximately 4.99% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.
• As other dividend issuers in the Financial Services sector, OMF's equity discount rate is less than 9.13% of those stocks.

OMF Dividends vs. Peers