AIV 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 AIV, the dividend discount model StockNews created for the company implies a positive return of 6.76%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Apartment Investment & Management Co are:

• In comparison to stocks we observe that provide shareholders with a dividend, Apartment Investment & Management Co's dividend yield of 4.52% is in the top 28.82%.
• A stock's beta generally indicates its volatility relative to the broader equity market; as for AIV, approximately 29.44% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.
• AIV's market cap of approximately $5 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 68.09% of them.

AIV Dividends vs. Peers