HE 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 HE, the dividend discount model StockNews created for the company implies a positive return of 52.86%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Hawaiian Electric Industries Inc are:

• HE's growth rate in terms of the amount of dividends it returns to shareholders is greater than merely 12.12% of its fellow dividend stocks in the Utilities sector.
• Hawaiian Electric Industries Inc's market cap of $4 billion US dollars puts it in the mid-sized market cap class; here, it has a lower equity discount rate than 85.6% of stocks.
• Beta, a measure of volatility relative to the stock market overall, is lower for Hawaiian Electric Industries Inc than it is for 88.24% of other dividend issuers in the Utilities sector.

HE Dividends vs. Peers