ED 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. In the case of ED, the DDM model generated by StockNews estimates a return of positive 169.74% in comparison to its current price. To help understand and contextualize the model's evaluation of ED, investors may wish to consider are:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Utilities sector, the expected return of 169.74%, based on the stock's current share price and target price based on a dividend discount model, is greater than 94.12% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, ED has a discount rate lower than 94.12% of them (a lower discount rate is associated with lower risk).
• Beta, a measure of volatility relative to the stock market overall, is lower for Consolidated Edison Inc than it is for 92.65% of other dividend issuers in the Utilities sector.

ED Dividends vs. Peers