COP 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. In the case of COP, the dividend discount model StockNews created for the company implies a negative return of 27.02%. Digging deeper, the aspects of Conocophillips's dividend discount model that we found most interesting were:

• COP's annual revenue of 21 billion US dollars puts it in the mega-sized revenue class; relative to suck stocks, it has a discount rate lower than 100% of dividend issuing stocks in its revenue class.
• Beta is a measure of how volatile a stock is relative to the S&P 500; when evaluated against its peers in the mega-sized revenue class, Conocophillips has a beta lower than merely 0% of such peers.
• In terms of who is growing the amount of dividends they return to shareholders, Conocophillips has been increasing its dividends at a faster rate than 6.11% of US-listed dividend-issuing stocks we observed.

COP Dividends vs. Peers