NFG 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 NFG, the dividend discount model StockNews created for the company implies a positive return of 86.13%. Digging deeper, the aspects of National Fuel Gas Co's dividend discount model that we found most interesting were:

• Beta, a measure of volatility relative to the stock market overall, is lower for NFG than it is for 92.73% of other equities in the Energy sector that also issue dividends.
• NFG's market cap of approximately $4 billion makes it a mid-sized market cap company; out of dividend issuers in this group, the investment opportunity based on the difference between its current share price and its forecasted DDM value is greater than 90.15% of them.
• As other dividend issuers in the Energy sector, NFG's equity discount rate is less than 92.73% of those stocks.

NFG Dividends vs. Peers