POWL 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. In the case of POWL, the DDM model, as implemented by StockNews, implies a negative return of 20.82% relative to its current price. Digging deeper, the aspects of Powell Industries Inc's dividend discount model that we found most interesting were:

• In comparison to other stocks in the Industrials sector, POWL provides shareholders with a dividend yield greater than 93.61% such stocks.
• In comparison to other US listed dividend yielding stocks in the Industrials sector, Powell Industries Inc's expected return of -20.82% is higher than 78.08% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, POWL has a discount rate lower than 78.08% of them (a lower discount rate is associated with lower risk).
• In terms of who is growing the amount of dividends they return to shareholders, POWL boasts a higher growth rate in terms of its annual cash distributed to its owners than only 15.04% of the dividend issuers in our set.

POWL Dividends vs. Peers