VLY 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 Valley National Bancorp, the DDM model generated by StockNews estimates a return of positive 48.29% in comparison to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Valley National Bancorp are:

• Compared to other US stocks that pay a dividend, Valley National Bancorp produces a dividend yield 6.21% -- which falls in the top 14.63%.
• In comparison to other US listed dividend yielding stocks in the Financial Services sector, the expected return of 48.29%, based on the stock's current share price and target price based on a dividend discount model, is greater than 79.84% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, Valley National Bancorp bears a discount rate, according to our calculations, lower than 79.84% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• As other dividend issuers in the Financial Services sector, Valley National Bancorp has an equity discount rate lower than 65.67% of them.

VLY Dividends vs. Peers