AEP 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. Regarding American Electric Power Co Inc, the DDM model generated by StockNews estimates a return of positive 76.36% in comparison to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for American Electric Power Co Inc are:

• In comparison to other US listed dividend yielding stocks in the Utilities sector, the expected return of 76.36%, based on the stock's current share price and target price based on a dividend discount model, is greater than 88.24% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, AEP has a discount rate lower than 88.24% of them (a lower discount rate is associated with lower risk).
• Beta, which compares volatilty of an individual stock to that of the S&P 500, is lower for American Electric Power Co Inc than it is for 91.18% of other dividend issuers in the Utilities sector.

AEP Dividends vs. Peers