Schweitzer-Mauduit International, Inc. (SWM) Dividends

SWM 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 SWM, the DDM model generated by StockNews estimates a return of positive 81.86% in comparison to its current price. Digging deeper, the aspects of Schweitzer Mauduit International Inc's dividend discount model that we found most interesting were:

• Relative to all dividend yielding stocks in our set, Schweitzer Mauduit International Inc produces a dividend yield 5.98% -- which falls in the top 10.49%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Basic Materials sector, the expected return of 81.86%, based on the stock's current share price and target price based on a dividend discount model, is greater than 77.78% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, SWM has a discount rate lower than 77.78% of them (a lower discount rate is associated with lower risk).
• Amongst its dividend-issuing peers in the small-sized market cap category, SWM has a beta lower than just 16.57% of them.

SWM Dividends vs. Peers