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As predicted last month in a recent Barchart article, Domino's Pizza (DPZ) hiked its dividend by 15% today. Based on its average historical yield, DPZ stock looks undervalued. It is trading down, providing an opportunity for value investors.
DPZ is trading at $449.56, down 2.7% today and off its recent high of $476.19 on Nov. 29. Given the company's strong free cash flow (FCF) performance and recent 15% dividend hike, investors can potentially see a 20% higher price target at $538.28. This article will show how this works out.