CHT 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 CHT, the dividend discount model StockNews created for the company implies a positive return of 2292.58%. To help understand and contextualize the model's evaluation of CHT, investors may wish to consider are:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Communication Services sector, the expected return of 2292.58%, based on the stock's current share price and target price based on a dividend discount model, is greater than just 100% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Chunghwa Telecom Co Ltd bears a discount rate, according to our calculations, lower than just 100% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• With a market cap of roughly $29 billion, CHT is in the large-sized market cap class; here, it has a lower equity discount rate than just 100% of stocks.
• Compared to other dividend issuers in the large-sized market cap category, CHT has a beta lower than just 100% of them.

CHT Dividends vs. Peers