SJI 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 SJI, the DDM model generated by StockNews estimates a return of positive 43.88% in comparison to its current price. Digging deeper, the aspects of South Jersey Industries Inc's dividend discount model that we found most interesting were:

• Relative to all dividend yielding stocks in our set, SJI offers a dividend yield in the top 16.3% of stocks in our set.
• In comparison to other US listed dividend yielding stocks in the Utilities sector, the expected return of 43.88%, based on the stock's current share price and target price based on a dividend discount model, is greater than 79.41% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, SJI has a discount rate lower than 79.41% of them (a lower discount rate is associated with lower risk).
• As other dividend issuers in the Utilities sector, SJI's equity discount rate is less than 27.94% of those stocks.

SJI Dividends vs. Peers