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. As for PBCT, the DDM model generated by StockNews estimates a return of positive 100.38% in comparison to its current price. To help understand and contextualize the model's evaluation of PBCT, investors may wish to consider are:

• Relative to all dividend yielding stocks in our set, People's United Financial Inc produces a dividend yield 6.84% -- which falls in the top 13.2%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, People's United Financial Inc's expected return of 100.38% is higher than 87.3% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, People's United Financial Inc bears a discount rate, according to our calculations, lower than 87.3% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• In comparison to its fellow dividend issuing stocks in the Financial Services sector, PBCT's equity discount rate is less than 78.17% of those stocks.

PBCT Dividends vs. Peers