UGI Price Forecast Based on Dividend Discount Model

For dividend yielding stocks, the Dividend Discount Model (DDM) is a common valuation tool; it attempts to extrapolate a fair share price based primarily on the dividend the stock provides relative to a number of other quantiative aspects of its business. In the case of UGI, the DDM model generated by StockNews estimates a return of positive 2.59% in comparison to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Ugi Corp are:

• UGI generates about 7 billion US dollars in revenue annually; relative to its peers in the mid-sized revenue class, it has a dividend yield higher than 77.4%.
• Ugi Corp's dividend growth rate is higher than 72.73% of stocks in its sector (Utilities).
• Beta, a measure of volatility relative to the stock market overall, is lower for Ugi Corp than it is for just 17.65% of other dividend issuers in the Utilities sector.

UGI Dividends vs. Peers