DTE 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 Dte Energy Co, the DDM model generated by StockNews estimates a return of negative 18.57% in comparison to its current price. Digging deeper, the aspects of Dte Energy Co'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, Dte Energy Co's expected return of -18.57% is higher than 29.41% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, Dte Energy Co bears a discount rate, according to our calculations, lower than 29.41% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Beta, a measure of volatility relative to the stock market overall, is lower for DTE than it is for only 16.18% of other equities in the Utilities sector that also issue dividends.
• As other dividend issuers in the Utilities sector, Dte Energy Co has an equity discount rate lower than 30.88% of them.

DTE Dividends vs. Peers