UVSP 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. As for UVSP, the DDM model, as implemented by StockNews, implies a positive return of 23.58% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for UNIVEST FINANCIAL Corp are:

• In comparison to stocks we observe that provide shareholders with a dividend, UNIVEST FINANCIAL Corp's dividend yield of 5.41% is in the top 19.57%.
• 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 23.58%, based on the stock's current share price and target price based on a dividend discount model, is greater than 71.71% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, UNIVEST FINANCIAL Corp bears a discount rate, according to our calculations, lower than 71.71% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Beta, which compares volatilty of an individual stock to that of the S&P 500, is lower for UVSP than it is for 66.53% of other equities in the Financial Services sector that also issue dividends.

UVSP Dividends vs. Peers