SBGI 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. Regarding Sinclair Broadcast Group Inc, the DDM model, as implemented by StockNews, implies a negative return of 15.4% relative to its current price. Digging deeper, the aspects of Sinclair Broadcast Group Inc's dividend discount model that we found most interesting were:

• In comparison to other stocks in the Consumer Cyclical sector, SBGI provides shareholders with a dividend yield greater than 86.81% such stocks.
• In comparison to other US listed dividend yielding stocks in the Consumer Cyclical sector, Sinclair Broadcast Group Inc's expected return of -15.4% is higher than 72.22% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, Sinclair Broadcast Group Inc bears a discount rate, according to our calculations, lower than 72.22% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Based on dividend growth rate, Sinclair Broadcast Group Inc has been increasing its dividends at a faster rate than only 22.61% of US-listed dividend-issuing stocks we observed.

SBGI Dividends vs. Peers