AGR 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 Avangrid Inc, the DDM model, as implemented by StockNews, implies a positive return of 109.77% relative to its current price. Digging deeper, the aspects of Avangrid Inc's dividend discount model that we found most interesting were:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Utilities sector, the expected return of 109.77%, based on the stock's current share price and target price based on a dividend discount model, is greater than 84.72% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, AGR has a discount rate lower than 84.72% of them (a lower discount rate is associated with lower risk).
• Beta, which compares volatilty of an individual stock to that of the S&P 500, is lower for Avangrid Inc than it is for 81.94% of other dividend issuers in the Utilities sector.

AGR Dividends vs. Peers