NWE 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 Northwestern Corp, the DDM model generated by StockNews estimates a return of negative 12.04% in comparison to its current price. Digging deeper, the aspects of Northwestern Corp's dividend discount model that we found most interesting were:

• In comparison to other dividend stocks in the Utilities sector, NWE is growing its dividends at a faster rate than about 79.1% of them.
• Beta, which compares volatilty of an individual stock to that of the S&P 500, is lower for NWE than it is for just 12.5% of other equities in the Utilities sector that also issue dividends.
• In comparison to its fellow dividend issuing stocks in the Utilities sector, NWE's equity discount rate is less than just 13.89% of those stocks.

NWE Dividends vs. Peers