PNNT Price Forecast Based on Dividend Discount Model

The Dividend Discount Model (DDM) is a valuation model that attempts to determine a fair share price for a stock, based on the dividend it provides in comparison to several company-specific metrics indicative of the riskiness of the stock and the financial health of the company. Regarding Pennantpark Investment Corp, the DDM model generated by StockNews estimates a return of positive 117.44% in comparison to its current price. To help understand and contextualize the model's evaluation of PNNT, investors may wish to consider are:

• Relative to all dividend yielding stocks in our set, Pennantpark Investment Corp's dividend yield of 10.76% is in the top 3.02%.
• In comparison to other US listed dividend yielding stocks in the Financial Services sector, the expected return of 117.44%, based on the stock's current share price and target price based on a dividend discount model, is greater than 93.32% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Pennantpark Investment Corp bears a discount rate, according to our calculations, lower than 93.32% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• PNNT's growth rate in terms of the amount of dividends it returns to shareholders is greater than 4.83% of its fellow dividend stocks in the Financial Services sector.

PNNT Dividends vs. Peers