PNNT 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 Pennantpark Investment Corp, the DDM model generated by StockNews estimates a return of positive 246.41% in comparison to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Pennantpark Investment Corp are:

• In comparison to stocks we observe that provide shareholders with a dividend, Pennantpark Investment Corp produces a dividend yield 14.37% -- which falls in the top 2.31999999999999%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, Pennantpark Investment Corp's expected return of 246.41% is higher than 96.22% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, PNNT has a discount rate lower than 96.22% of them (a lower discount rate is associated with lower risk).
• Pennantpark Investment Corp's dividend growth rate is higher than 5.31% of stocks in its sector (Financial Services).

PNNT Dividends vs. Peers