PNW 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 PNW, the dividend discount model StockNews created for the company implies a positive return of 15.24%. Digging deeper, the aspects of Pinnacle West Capital Corp's dividend discount model that we found most interesting were:

• The amount of revenue Pinnacle West Capital Corp earns annually is around 3 billion; relative to its peers in the mid-sized revenue class, it has a dividend yield higher than 78.46%.
• The Pinnacle West Capital Corp's dividend growth rate is greater than 33.2% of its fellow large-sized market cap stocks that issue dividends.
• The stock's annual revenue of roughly $3 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 75.06% of companies in the same revenue class.

PNW Dividends vs. Peers