AU 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 AU, the DDM model generated by StockNews estimates a return of positive 49.74% in comparison to its current price. Digging deeper, the aspects of Anglogold Ashanti Ltd's dividend discount model that we found most interesting were:

• Compared to other US stocks that pay a dividend, Anglogold Ashanti Ltd produces a dividend yield 0.35% -- which falls in the bottom 3.74%.
• Amongst its dividend-issuing peers in the large-sized market cap category, AU has a beta lower than 96.45% of them.

AU Dividends vs. Peers