Texas Pacific Land Trust (TPL) Dividends

TPL 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 TPL, the DDM model, as implemented by StockNews, implies a negative return of 70.24% relative to its current price. Digging deeper, the aspects of Texas Pacific Land Corp's dividend discount model that we found most interesting were:

• As for its position relative to other Energy stocks that issue dividends, TPL provides shareholders with a dividend yield greater than 9.52% such stocks.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Energy sector, the expected return of -70.24%, based on the stock's current share price and target price based on a dividend discount model, is greater than only 12.38% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, TPL has a discount rate lower than only 12.38% 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, Texas Pacific Land Corp has been increasing its dividends at a faster rate than 98.97% of US-listed dividend-issuing stocks we observed.

TPL Dividends vs. Peers