THG 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. As for THG, the dividend discount model StockNews created for the company implies a positive return of 27.61%. Digging deeper, the aspects of Hanover Insurance Group Inc's dividend discount model that we found most interesting were:

• In comparison to other US listed dividend yielding stocks in the Financial Services sector, the expected return of 27.61%, based on the stock's current share price and target price based on a dividend discount model, is greater than 81.66% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, THG has a discount rate lower than 81.66% of them (a lower discount rate is associated with lower risk).
• In terms of who is growing the amount of dividends they return to shareholders, THG boasts a higher growth rate in terms of its annual cash distributed to its owners than 83.64% of the dividend issuers in our set.
• As other dividend issuers in the Financial Services sector, THG's equity discount rate is less than 75.15% of those stocks.

THG Dividends vs. Peers