AEP 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. Regarding American Electric Power Co Inc, the dividend discount model StockNews created for the company implies a positive return of 96.11%. 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, American Electric Power Co Inc's expected return of 96.11% is higher than 90.77% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, American Electric Power Co Inc bears a discount rate, according to our calculations, lower than 90.77% of them (lower discount rates are generally perceived as positive, and a sign of 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 93.85% of other dividend issuers in the Utilities sector.

AEP Dividends vs. Peers