MCD

[Forticus]

(07-13-2016, 11:12 PM)Dividend Watcher Wrote: Did you get the secret handshake instructions yet?

That's a trap question. Certainly I am not allowed to answer whether I got it or not - in public. 
When I started my "dividend bussiness" last year, I thought, the local MCD would be the appropriate place for the anual shareholder meeting: conference room an table for free and catering paid from dividends - myLittleOmaha. So with respect to your question, all I can say is that I will not use the Sacred Parchment as a napkin. ( https://www.youtube.com/watch?v=HmEtR17A6ck)

Quote:Your probably excited about the nice capital gains you've accrued so far. Now the fun part ... sitting in this price range for another 6 months or beyond while earnings catch up to the valuation.

I did three valuations based on my buy price and data from 2015. 1) DCF, 2) P/E in 10 years based on EPS growth and 3) P/E in 10 years  based on ROE (from growth of equity). The latter two described in "Buffettology". The tables of (2) and (3) say that the value per share will reach $122 in 2021. So if I want to become a serious DGI, all I should do is to watch the dividends rolling in? 
Table (3) was a bit confusing as which numbers to use. MCD doubled debt per share and almost quartered down equity per share since 2014 (data from stockrover).
Based on equity and ROE from 2014 I will have a YOC of 14% in 2025.
Based on recent/last DGR 4.7%, the YOC in 2025 will be 5.6%