SJI Price Forecast Based on Dividend Discount Model

The Dividend Discount Model (DDM) is a valuation model that attempts to determine a fair share price for a stock, based on the dividend it provides in comparison to several company-specific metrics indicative of the riskiness of the stock and the financial health of the company. As for SJI, the DDM model generated by StockNews estimates a return of positive 25.69% in comparison to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for South Jersey Industries Inc are:

• Compared to other US stocks that pay a dividend, South Jersey Industries Inc's dividend yield of 5.17% is in the top 15.51%.
• SJI'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 79.92% of them.
• In comparison to its fellow dividend issuing stocks in the Utilities sector, South Jersey Industries Inc has an equity discount rate lower than only 23.94% of them.

SJI Dividends vs. Peers