iStar Inc. (STAR) Dividends

STAR 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 STAR, the DDM model generated by StockNews estimates a return of negative 56.65% in comparison to its current price. To help understand and contextualize the model's evaluation of STAR, investors may wish to consider are:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Real Estate sector, the expected return of -56.65%, based on the stock's current share price and target price based on a dividend discount model, is greater than 8.56% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Istar Inc bears a discount rate, according to our calculations, lower than 8.56% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Beta, which compares volatilty of an individual stock to that of the S&P 500, is lower for Istar Inc than it is for 6.95% of other dividend issuers in the Real Estate sector.
• As other dividend issuers in the Real Estate sector, Istar Inc has an equity discount rate lower than 7.49% of them.

STAR Dividends vs. Peers