HSY 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 Hershey Co, the DDM model, as implemented by StockNews, implies a negative return of 1.21% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Hershey Co are:

• Beta tells us how volatile a stock's price is relative to the broader equity index; for Hershey Co, its beta is lower than 77.13% of dividend issuing stocks we observed.
• The stock's annual revenue of roughly $8 billion puts it in the mid-sized revenue class, where its estimated gain based on our dividend discount model price relative to its current share price is greater than 68.23% of companies in the same revenue class.

HSY Dividends vs. Peers