ABB Ltd (ABB) Dividends

ABB 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 Abb Ltd, the dividend discount model StockNews created for the company implies a negative return of 24.7%. To help understand and contextualize the model's evaluation of ABB, investors may wish to consider are:

• Relative to all dividend yielding stocks in our set, Abb Ltd's dividend yield of 1.36% is in the bottom 28.78%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Industrials sector, Abb Ltd's expected return of -24.7% is higher than 76.96% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, ABB has a discount rate lower than 76.96% of them (a lower discount rate is associated with lower risk).
• As other dividend issuers in the Industrials sector, ABB's equity discount rate is less than 68.26% of those stocks.

ABB Dividends vs. Peers