RILY 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. As for RILY, the DDM model generated by StockNews estimates a return of positive 42.58% in comparison to its current price. Digging deeper, the aspects of B Riley Financial Inc's dividend discount model that we found most interesting were:

• Relative to all dividend yielding stocks in our set, B Riley Financial Inc's dividend yield of 4.86% is in the top 25.73%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, B Riley Financial Inc's expected return of 42.58% is higher than 77.98% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, RILY has a discount rate lower than 77.98% 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, RILY boasts a higher growth rate in terms of its annual cash distributed to its owners than 88.15% of the dividend issuers in our set.

RILY Dividends vs. Peers