EIX 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 Edison International, the dividend discount model StockNews created for the company implies a positive return of 39.59%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Edison International are:

• In comparison to other stocks in the Utilities sector, EIX provides shareholders with a dividend yield greater than 86.76% such stocks.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Utilities sector, Edison International's expected return of 39.59% is higher than 75% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, EIX has a discount rate lower than 75% of them (a lower discount rate is associated with lower risk).
• Based on dividend growth rate, Edison International has been increasing its dividends at a faster rate than only 13.85% of US-listed dividend-issuing stocks we observed.

EIX Dividends vs. Peers