ABB 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. As for ABB, the DDM model generated by StockNews estimates a return of negative 5.7% in comparison to its current price. To help understand and contextualize the model's evaluation of ABB, investors may wish to consider are:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Industrials sector, the expected return of -5.7%, based on the stock's current share price and target price based on a dividend discount model, is greater than 82.65% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, ABB has a discount rate lower than 82.65% of them (a lower discount rate is associated with lower risk).
• Abb Ltd's dividend growth rate is greater than 33.54% of dividend issuers in the large-sized market cap class, where it lives.

ABB Dividends vs. Peers