SHLX 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 Shell Midstream Partners LP, the DDM model generated by StockNews estimates a return of positive 147.07% in comparison to its current price. To help understand and contextualize the model's evaluation of SHLX, investors may wish to consider are:

• Compared to other US stocks that pay a dividend, Shell Midstream Partners LP produces a dividend yield 13.39% -- which falls in the top 5.19%.
• Beta is a measure of how volatile a stock is relative to the S&P 500; when evaluated against its peers in the small-sized revenue class, Shell Midstream Partners LP has a beta lower than only 14.8% of such peers.
• In terms of opportunity, SHLX's provides a return of 147.07% based on the forecast of the dividend discount model we used relative to its current share price; this is a better return than 85.82% of all stocks we measured with our dividend discount model.

SHLX Dividends vs. Peers