05-15-2014, 04:44 PM
(This post was last modified: 05-15-2014, 04:45 PM by earthtodan.)
Your math is an interesting study of the Chowder rule. The yield is slightly higher than it was in 1991, therefore it makes sense that the price must have correlated to the DGR.
Adjusted for 3 splits since 1991, it looks like the stock price has appreciated at about a 13.8% CAGR. Adjusted for the same splits, it looks like the dividend has increased at about a 15.1% CAGR over the same period. I haven't checked longrundata, but that's what a quick Excel calculation says it has to be.
Personally, I started a position in CVS about a week ago at $72. The yield is lower but it looks like a better value than WAG, and the DGR is higher.
Adjusted for 3 splits since 1991, it looks like the stock price has appreciated at about a 13.8% CAGR. Adjusted for the same splits, it looks like the dividend has increased at about a 15.1% CAGR over the same period. I haven't checked longrundata, but that's what a quick Excel calculation says it has to be.
Personally, I started a position in CVS about a week ago at $72. The yield is lower but it looks like a better value than WAG, and the DGR is higher.