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. As for AQN, the DDM model, as implemented by StockNews, implies a positive return of 3.12% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Algonquin Power & Utilities Corp are:

• AQN's market cap is about 9 billion US dollars -- this puts the stock in the mid-sized market cap class, and its dividend yield is greater than 74.62% of dividend yielding stocks in the same market cap class.
• In comparison to other stocks in the small-sized revenue class, it has a discount rate lower than 25.09% of dividend issuing stocks in its revenue class.
• Based on dividend growth rate, AQN boasts a higher growth rate in terms of its annual cash distributed to its owners than 87.36% of the dividend issuers in our set.

AQN Dividends vs. Peers