AQN 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 Algonquin Power & Utilities Corp, the dividend discount model StockNews created for the company implies a positive return of 8.27%. To help understand and contextualize the model's evaluation of AQN, investors may wish to consider are:

• Given its market cap of around 8 billion US dollars, this puts the stock in the mid-sized market cap class, and its dividend yield is greater than 71.4% of dividend yielding stocks in the same market cap class.
• AQN's annual revenue of 1 billion US dollars puts it in the small-sized revenue class; relative to suck stocks, it has a discount rate lower than 26.05% of dividend issuing stocks in its revenue class.
• In terms of who is growing the amount of dividends they return to shareholders, Algonquin Power & Utilities Corp has been increasing its dividends at a faster rate than 78.63% of US-listed dividend-issuing stocks we observed.

AQN Dividends vs. Peers