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. In the case of PSEC, the dividend discount model StockNews created for the company implies a positive return of 622.29%. Digging deeper, the aspects of Prospect Capital Corp's dividend discount model that we found most interesting were:

• As for its position relative to other Financial Services stocks that issue dividends, Prospect Capital Corp offers a higher dividend yield than 98.81% of them.
• In comparison to other US listed dividend yielding stocks in the Financial Services sector, Prospect Capital Corp's expected return of 622.29% is higher than 99.6% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, PSEC has a discount rate lower than 99.6% of them (a lower discount rate is associated with lower risk).
• PSEC's growth rate in terms of the amount of dividends it returns to shareholders is greater than 2.63% of its fellow dividend stocks in the Financial Services sector.

PSEC Dividends vs. Peers