SFNC 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. As for SFNC, the DDM model, as implemented by StockNews, implies a negative return of 4.43% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Simmons First National Corp are:

• Given its market cap of around 2 billion US dollars, this puts the stock in the mid-sized market cap class, and its dividend yield is greater than 70.04% of dividend yielding stocks in the same market cap class.
• SFNC's market cap of approximately $2 billion makes it a mid-sized market cap company; out of dividend issuers in this group, the investment opportunity based on the difference between its current share price and its forecasted DDM value is greater than 62.65% of them.
• Based on dividend growth rate, SFNC boasts a higher growth rate in terms of its annual cash distributed to its owners than 80.71% of the dividend issuers in our set.

SFNC Dividends vs. Peers