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 84.21%. To help understand and contextualize the model's evaluation of NFG, investors may wish to consider are:

• Beta, which compares volatilty of an individual stock to that of the S&P 500, is lower for National Fuel Gas Co than it is for 92.59% of other dividend issuers in the Energy sector.
• The stock's annual revenue of roughly $2 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 85.68% of companies in the same revenue class.
• As other dividend issuers in the Energy sector, NFG's equity discount rate is less than 92.59% of those stocks.

NFG Dividends vs. Peers