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 dividend discount model StockNews created for the company implies a positive return of 107.66%. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Anglogold Ashanti Ltd are:

• Relative to all dividend yielding stocks in our set, Anglogold Ashanti Ltd produces a dividend yield 0.29% -- which falls in the bottom 1.83%.
• Amongst its dividend-issuing peers in the large-sized market cap category, AU has a beta lower than 98.3% of them.

AU Dividends vs. Peers