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. In the case of SHLX, the dividend discount model StockNews created for the company implies a positive return of 213.11%. 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's dividend yield of 19.37% is in the top 6.06999999999999%.
• A stock's beta generally indicates its volatility relative to the broader equity market; for Shell Midstream Partners LP, its beta is lower than only 12.31% of dividend issuing stocks we observed.
• SHLX's market cap of approximately $2 billion makes it a mid-sized market cap company; out of dividend issuers in this group, the investment opportunity based on the difference between its current share price and its forecasted DDM value is greater than 85.9% of them.

SHLX Dividends vs. Peers