UVE 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 Universal Insurance Holdings Inc, the DDM model, as implemented by StockNews, implies a positive return of 5.87% relative to its current price. 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's dividend yield of 4.24% is in the top 21.39%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, Universal Insurance Holdings Inc's expected return of 5.87% is higher than 73.37% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, Universal Insurance Holdings Inc bears a discount rate, according to our calculations, lower than 73.37% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• UVE's growth rate in terms of the amount of dividends it returns to shareholders is greater than only 23.26% of its fellow dividend stocks in the Financial Services sector.

UVE Dividends vs. Peers