UVE 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. Regarding Universal Insurance Holdings Inc, the dividend discount model StockNews created for the company implies a positive return of 21.53%. Digging deeper, the aspects of Universal Insurance Holdings Inc's dividend discount model that we found most interesting were:

• Compared to other US stocks that pay a dividend, Universal Insurance Holdings Inc produces a dividend yield 4.55% -- which falls in the top 28.4%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, the expected return of 21.53%, based on the stock's current share price and target price based on a dividend discount model, is greater than 71.26% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Universal Insurance Holdings Inc bears a discount rate, according to our calculations, lower than 71.26% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• In terms of who is growing the amount of dividends they return to shareholders, UVE boasts a higher growth rate in terms of its annual cash distributed to its owners than 30.14% of the dividend issuers in our set.

UVE Dividends vs. Peers