SAFT 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 SAFT, the dividend discount model StockNews created for the company implies a positive return of 88.31%. To help understand and contextualize the model's evaluation of SAFT, investors may wish to consider are:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, Safety Insurance Group Inc's expected return of 88.31% is higher than 90.53% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, SAFT has a discount rate lower than 90.53% of them (a lower discount rate is associated with lower risk).
• Beta, which compares volatilty of an individual stock to that of the S&P 500, is lower for Safety Insurance Group Inc than it is for 87.38% of other dividend issuers in the Financial Services sector.
• In comparison to its fellow dividend issuing stocks in the Financial Services sector, Safety Insurance Group Inc has an equity discount rate lower than 91.12% of them.

SAFT Dividends vs. Peers