DUK 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 Duke Energy CORP, the DDM model generated by StockNews estimates a return of positive 64.69% in comparison to its current price. To help understand and contextualize the model's evaluation of DUK, investors may wish to consider are:

• As for its position relative to other Utilities stocks that issue dividends, DUK provides shareholders with a dividend yield greater than 89.23% such stocks.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Utilities sector, Duke Energy CORP's expected return of 64.69% is higher than 84.62% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, DUK has a discount rate lower than 84.62% of them (a lower discount rate is associated with lower risk).
• Duke Energy CORP's dividend growth rate is higher than only 19.67% of stocks in its sector (Utilities).

DUK Dividends vs. Peers