SWM 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. Regarding Schweitzer Mauduit International Inc, the DDM model, as implemented by StockNews, implies a positive return of 19.08% relative to its current price. To help understand and contextualize the model's evaluation of SWM, investors may wish to consider are:

• Relative to all dividend yielding stocks in our set, Schweitzer Mauduit International Inc produces a dividend yield 4.38% -- which falls in the top 19.94%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Basic Materials sector, Schweitzer Mauduit International Inc's expected return of 19.08% is higher than 79.49% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, SWM has a discount rate lower than 79.49% of them (a lower discount rate is associated with lower risk).
• SWM's annual revenue, now at roughly $1 billion US dollars, classifies the stock in the small-sized revenue class -- and relative to other dividend issuers in this class, the growth rate of its dividend is greater than that of 29.93% of them.

SWM Dividends vs. Peers