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, as implemented by StockNews, implies a positive return of 39.97% relative 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, Washington Trust Bancorp Inc's dividend yield of 6.13% is in the top 15.88%.
• 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 39.97%, based on the stock's current share price and target price based on a dividend discount model, is greater than 76.59% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, Washington Trust Bancorp Inc bears a discount rate, according to our calculations, lower than 76.59% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Beta, a measure of volatility relative to the stock market overall, is lower for WASH than it is for 65.67% of other equities in the Financial Services sector that also issue dividends.

WASH Dividends vs. Peers