Safety Insurance Group, Inc. (SAFT) Dividends

SAFT 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 SAFT, the dividend discount model StockNews created for the company implies a positive return of 2689.15%. Digging deeper, the aspects of Safety Insurance Group Inc's dividend discount model that we found most interesting were:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, the expected return of 2689.15%, based on the stock's current share price and target price based on a dividend discount model, is greater than 98.83% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, Safety Insurance Group Inc bears a discount rate, according to our calculations, lower than 98.83% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Safety Insurance Group Inc's market cap of $1 billion US dollars puts it in the small-sized market cap class; here, it has a lower equity discount rate than 99.07% of stocks.
• A stock's beta generally indicates its volatility relative to the broader equity market; for Safety Insurance Group Inc, its beta is lower than 93.45% of dividend issuing stocks we observed.

SAFT Dividends vs. Peers