American Express Co. (AXP) Dividends

AXP Price Forecast Based on Dividend Discount Model

The Dividend Discount Model (DDM) is a valuation model that attempts to determine a fair share price for a stock, based on the dividend it provides in comparison to several company-specific metrics indicative of the riskiness of the stock and the financial health of the company. Regarding American Express Co, the DDM model generated by StockNews estimates a return of negative 71.27% in comparison to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for American Express Co are:

• Compared to other US stocks that pay a dividend, AXP offers a dividend yield in the bottom 0.99% of its fellow sector mates.
• In comparison to other US listed dividend yielding stocks in the Financial Services sector, the expected return of -71.27%, based on the stock's current share price and target price based on a dividend discount model, is greater than merely 13.13% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, AXP has a discount rate lower than merely 13.13% of them (a lower discount rate is associated with lower risk).
• AXP's growth rate in terms of the amount of dividends it returns to shareholders is greater than merely 23.16% of its fellow dividend stocks in the Financial Services sector.

AXP Dividends vs. Peers