SON 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 SON, the DDM model generated by StockNews estimates a return of positive 2.2% in comparison to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Sonoco Products Co are:

• In comparison to other stocks in the Consumer Cyclical sector, SON provides shareholders with a dividend yield greater than 79.73% such stocks.
• In comparison to other US listed dividend yielding stocks in the Consumer Cyclical sector, the expected return of 2.2%, based on the stock's current share price and target price based on a dividend discount model, is greater than 80.41% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, SON has a discount rate lower than 80.41% of them (a lower discount rate is associated with lower risk).
• Sonoco Products Co's market cap of $5 billion US dollars puts it in the mid-sized market cap class; amongst this group of stocks, its equity discount rate is lower than 71.21% of them.

SON Dividends vs. Peers