02-09-2014, 10:29 PM
GAAP reported earnings for the last 4 quarters = $11.09. A reasonable P/E seems to be around 9.5. That gives us a fair value based on that of $105.35 and a yield around 3.8%. CAGR of GAAP reported earnings for the last 10 years is around 12%. Analysts are projecting 5.4% forward growth (Yahoo). Did a quick DCF calculation on moneychimp.com using their defaults which comes to a fair price of $124.93.
For their consistency, I'd still pay a little premium for it and that dividend sure looks nice every quarter. With it's run back up a little, it's still #3 (at 7%) in my portfolio. Do I trim? I'm not inclined to even now.
For their consistency, I'd still pay a little premium for it and that dividend sure looks nice every quarter. With it's run back up a little, it's still #3 (at 7%) in my portfolio. Do I trim? I'm not inclined to even now.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan