PSEC 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. As for PSEC, the dividend discount model StockNews created for the company implies a positive return of 719.08%. To help understand and contextualize the model's evaluation of PSEC, investors may wish to consider are:

• In comparison to other stocks in the Financial Services sector, PSEC provides shareholders with a dividend yield greater than 95.19% such stocks.
• Prospect Capital Corp's dividend growth rate is greater than 4.99% of dividend issuers in the mid-sized market cap class, where it lives.
• In terms of opportunity, Prospect Capital Corp's estimated return of 719.08% surpasses about 96.25% of dividend issuers we applied the dividend discount model to.

PSEC Dividends vs. Peers