OPBK 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. In the case of OPBK, the DDM model, as implemented by StockNews, implies a negative return of 5.32% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for OP Bancorp are:

• In comparison to stocks we observe that provide shareholders with a dividend, OPBK offers a dividend yield in the top 24.97% of stocks in our set.
• 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 -5.32%, based on the stock's current share price and target price based on a dividend discount model, is greater than 58.88% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, OPBK has a discount rate lower than 58.88% of them (a lower discount rate is associated with lower risk).
• Beta tells us how volatile a stock's price is relative to the broader equity index; as for OPBK, approximately 83.84% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.

OPBK Dividends vs. Peers