PBCT 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. Regarding People's United Financial Inc, the DDM model, as implemented by StockNews, implies a positive return of 62.33% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for People's United Financial Inc are:

• In comparison to stocks we observe that provide shareholders with a dividend, People's United Financial Inc produces a dividend yield 5.57% -- which falls in the top 13.01%.
• PBCT's market cap of approximately $5 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 87.31% of them.
• As other dividend issuers in the Financial Services sector, People's United Financial Inc has an equity discount rate lower than 75.74% of them.

PBCT Dividends vs. Peers