SO Price Forecast Based on Dividend Discount Model

A technique commonly used by dividend investors to value dividend-issuing stocks is the Dividend Discount Model (DDM), which seeks to determine a fair share price based on the dividend provided by the company relative to a number of other company-specific factors. Regarding Southern Co, the DDM model, as implemented by StockNews, implies a positive return of 33.42% relative to its current price. Digging deeper, the aspects of Southern Co's dividend discount model that we found most interesting were:

• In comparison to other stocks in the Utilities sector, Southern Co offers a higher dividend yield than 91.3% of them.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Utilities sector, Southern Co's expected return of 33.42% is higher than 73.91% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, SO has a discount rate lower than 73.91% of them (a lower discount rate is associated with lower risk).

SO Dividends vs. Peers