SPOK 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 SPOK, the DDM model, as implemented by StockNews, implies a positive return of 26.67% relative to its current price. Digging deeper, the aspects of Spok Holdings Inc's dividend discount model that we found most interesting were:

• A stock's beta generally indicates its volatility relative to the broader equity market; for Spok Holdings Inc, its beta is lower than 84.88% of dividend issuing stocks we observed.
• In terms of who is growing the amount of dividends they return to shareholders, SPOK boasts a higher growth rate in terms of its annual cash distributed to its owners than only 11.03% of the dividend issuers in our set.
• In comparison to its fellow dividend issuing stocks in the Communication Services sector, Spok Holdings Inc has an equity discount rate lower than 3.7% of them.

SPOK Dividends vs. Peers