PLOW Price Forecast Based on Dividend Discount Model

For dividend yielding stocks, the Dividend Discount Model (DDM) is a common valuation tool; it attempts to extrapolate a fair share price based primarily on the dividend the stock provides relative to a number of other quantiative aspects of its business. Regarding Douglas Dynamics Inc, the DDM model, as implemented by StockNews, implies a negative return of 12.07% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Douglas Dynamics Inc are:

• In comparison to other stocks in the Consumer Cyclical sector, Douglas Dynamics Inc offers a higher dividend yield than 75% of them.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Consumer Cyclical sector, the expected return of -12.07%, based on the stock's current share price and target price based on a dividend discount model, is greater than 74.31% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Douglas Dynamics Inc bears a discount rate, according to our calculations, lower than 74.31% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Based on dividend growth rate, PLOW boasts a higher growth rate in terms of its annual cash distributed to its owners than 30.14% of the dividend issuers in our set.

PLOW Dividends vs. Peers