NUE 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. As for NUE, the DDM model generated by StockNews estimates a return of negative 14.54% in comparison to its current price. Digging deeper, the aspects of Nucor Corp's dividend discount model that we found most interesting were:

• In comparison to other stocks in the Basic Materials sector, Nucor Corp offers a higher dividend yield than 74.36% of them.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Basic Materials sector, the expected return of -14.54%, based on the stock's current share price and target price based on a dividend discount model, is greater than 66.67% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, NUE has a discount rate lower than 66.67% of them (a lower discount rate is associated with lower risk).
• Based on dividend growth rate, NUE boasts a higher growth rate in terms of its annual cash distributed to its owners than only 17.4% of the dividend issuers in our set.

NUE Dividends vs. Peers