DOW share price in focus
Downer is the leading provider of integrated infrastructure services in Australia and New Zealand. They’re responsible for building, maintaining, and operating transit systems, utilities services, and public infrastructure.
While the name might not be familiar, you’ve definitely come across their work. Downer operate services like the Yarra Trams in Melbourne, and build the passenger trains you see in most states.
Downer separates its business into three main segments of Transport, Utilities, and Facilities. Transport delivers a little over 50% of their revenue, and Utilities and Facilities around 20% and 30% respectively.
MQG shares
Macquarie Group, founded in 1969, is a global investment bank and financial services company.
Unlike other major Australian banks, Macquarie combines traditional banking with a robust asset management division, operating across sectors such as infrastructure, commodities, agriculture, real estate, and global equity markets.
Macquarie is committed to delivering consistent value to its shareholders, boasting over 55 years of uninterrupted profitability.
DOW & MQG share price valuation
One way to have a ‘quick read’ of where the DOW share price is could be to study something like dividend yield over time. This can give us a sense of the stability of the company and whether they can consistently pay out a percentage of profits.
Remember, the dividend yield is basically the ‘cash flow’ to a shareholder, but it can fluctuate year-to-year or between payments. Currently, Downer EDI Ltd shares have a dividend yield of around 3.12%, compared to its 5-year average of 3.74%. In other words, DOW shares are trading lower than their historical average dividend yield. Be careful how you interpret this information though – it could mean that dividends have fallen, or that the share price is increasing, or both. In the case of DOW, we can see that last year’s dividend was less than the 3-year average, so the dividend has been falling.
MQG is offering a historical dividend yield of around 3.23%, which compares to its 5-year average of 3.16%. This is just one of many ways you could put a value on MQG shares. The Rask websites offer free online investing courses, created by analysts explaining valuation methods like Discounted Cash Flow (DCF) and Dividend Discount Models (DDM). They even include free valuation spreadsheets which can help you learn how to value a company like DOW or MQG.
