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.