HE Price Forecast Based on Dividend Discount Model

The Dividend Discount Model (DDM) is a valuation model that attempts to determine a fair share price for a stock, based on the dividend it provides in comparison to several company-specific metrics indicative of the riskiness of the stock and the financial health of the company. In the case of HE, the DDM model generated by StockNews estimates a return of positive 46.46% in comparison to its current price. Digging deeper, the aspects of Hawaiian Electric Industries Inc's dividend discount model that we found most interesting were:

• HE's growth rate in terms of the amount of dividends it returns to shareholders is greater than only 10.14% of its fellow dividend stocks in the Utilities sector.
• With a market cap of roughly $4 billion, HE is in the mid-sized market cap class; here, it has a lower equity discount rate than 84.36% of stocks.
• Beta, a measure of volatility relative to the stock market overall, is lower for Hawaiian Electric Industries Inc than it is for 85.92% of other dividend issuers in the Utilities sector.

HE Dividends vs. Peers