WASH 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 Washington Trust Bancorp Inc, the DDM model generated by StockNews estimates a return of positive 20% in comparison to its current price. Digging deeper, the aspects of Washington Trust Bancorp Inc's dividend discount model that we found most interesting were:

• Compared to other US stocks that pay a dividend, WASH offers a dividend yield in the top 17.25% of stocks in our set.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, Washington Trust Bancorp Inc's expected return of 20% is higher than 76.62% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, WASH has a discount rate lower than 76.62% of them (a lower discount rate is associated with lower risk).
• Beta, a measure of volatility relative to the stock market overall, is lower for WASH than it is for 64.83% of other equities in the Financial Services sector that also issue dividends.

WASH Dividends vs. Peers