10-24-2014, 12:50 PM
(10-24-2014, 12:21 PM)Roadmap2Retire Wrote: I might just pull the trigger if it falls below $38...although current eval isnt so bad either.
This line of thinking never resonated with me.
It's a 2.7% price difference between $39.05 and $38. Aren't you going to hold the company for years + decades?
The last 10 year average P/E was exactly 20. It stands at 16.5 right now.
The price was over $45 as recently as July.
UL currently pays a dividend of $1.52 / yr.
At $39.05 that's a 3.892% YOC.
At $38 that's a 4% YOC.
Extrapolated out with dividends reinvested for decades its going to make *some* difference, but is it worth the risk of passing on a blue chip company at a great value?
This is how people continually missing buying KO, PH, WAG, CL, CLX, MO ....