Fortunately, the process of finding these gems is made a lot easier when you have a clear understanding of how to go about estimating
the fair value of a dividend growth stock.
For example, fellow contributor Dave Van Knapp published a valuation guide that's designed to help an investor roughly gauge
the fair value of a dividend growth stock.
For example, fellow contributor Dave Van Knapp published a valuation guide that's designed to help an investor roughly gauge
the fair value of a dividend growth stock.
Not exact matches
Source: Motley Fool Related Articles: - 6 Stocks Currently Trading Below their
Fair Value - The Wit and Wisdom
of Warren Buffett - The Perfect
Dividend Stock - Charlie Munger's 10 Rules for Investment Success - Early Warning Signs
of 5
Dividend Cut
The tender offer closed in September 2011, and at the close
of the transaction, the Company recorded $ 34.7 million as compensation expense related to the excess
of the selling price per share
of common stock paid to the Company's employees and consultants over the
fair value of the tendered share, and $ 35.8 million as deemed
dividends in relation to excess
of the selling price per share
of common and preferred stock paid to existing investors in excess
of the
fair value of the shares tendered.
These positive earnings drivers were more than offset by the combined impact
of several factors, including increased energy - related provisions for credit losses, a 17 basis point decline in net interest margin, moderate growth
of non-interest expenses, the addition
of acquisition - related contingent consideration
fair value changes reflecting performance within CWB Maxium Financial (CWB Maxium), higher preferred share
dividends, and the 20 % increase to CWB's income tax rate in Alberta.
Net interest income and non-interest income both increased 7 %; however, the combined impact
of moderate growth
of non-interest expenses, increased provisions for credit losses, acquisition - related
fair value changes and higher preferred share
dividends resulted in lower earnings.
Fortunately, it's not impossible — or even all that difficult, really — to estimate the
fair value of just about any
dividend growth stock out there, putting an investor in the «driver's seat» when it comes to making an intelligent investment decision for the long term.
Each issue discusses a position's category, its catalysts for
dividend growth & price appreciation, its risks, and our estimate
of fair value.
Each issue discusses a current holding: its category, catalysts for
dividend growth & price appreciation, risks, and our estimate
of fair value.
In each issue we discuss a current holding: its category, catalysts for
dividend growth & price appreciation, risks, and our estimate
of fair value.
It provides a summary
of your taxable FIF income under the standard
Fair Dividend Rate (FDR) method and the Comparative
Value (CV) method.
This is the second
of a five - part series presenting 50
dividend growth stocks that I have screened for current
fair value.
Reason why I like it: the markets they operate in (security, automotive) hereby already having a strong patent portofio, high operating margins (66 %), no debt, a current yield
of 2.20 %, regular special
dividends, a low P / E
of 9.5 and the DCF calculations suggest a
fair value of approx.
The good news about all
of this is that it's not terribly difficult to estimate the
fair value of just about any
dividend growth stock out there.
DIV STRK is consecutive years
of dividend increases; DIV YLD is yield using the most recently announced
dividend; 5 YR YLD is average
dividend yield over the past 5 years; REC DG is most recent year - over-year
dividend growth; 5 YR DG is average annual
dividend growth over the past 5 years; PRICE was at market close Friday, March 2;
FAIR VAL is Morningstar's «Fair Value Estimate»; FWD P / E is price / earnings ratio based on projected 2018 earnings; 5 YR P / E is average P / E ratio over the past 5 years; MOAT is Morningstar's rating of competitive economic advantage; SFT is Value Line's «Safety» score; CRD is Standard & Poor's credit rating; MKT CAP is market cap in billions of doll
FAIR VAL is Morningstar's «
Fair Value Estimate»; FWD P / E is price / earnings ratio based on projected 2018 earnings; 5 YR P / E is average P / E ratio over the past 5 years; MOAT is Morningstar's rating of competitive economic advantage; SFT is Value Line's «Safety» score; CRD is Standard & Poor's credit rating; MKT CAP is market cap in billions of doll
Fair Value Estimate»; FWD P / E is price / earnings ratio based on projected 2018 earnings; 5 YR P / E is average P / E ratio over the past 5 years; MOAT is Morningstar's rating
of competitive economic advantage; SFT is
Value Line's «Safety» score; CRD is Standard & Poor's credit rating; MKT CAP is market cap in billions
of dollars.
A recent Undervalued
Dividend Growth Stock
of the Week article I published on the stock indicated it had a
fair value price
of about $ 24.
Praxair is an example
of a high quality
dividend growth stock trading around
fair value.
Most
of our portfolio companies pay generous
dividends or repurchase significant quantities
of outstanding shares, thereby paying investors to wait until the market recognizes their
fair values.
A company with a high
dividend yield pays its investors a large
dividend compared to the
fair market
value of the stock.
In this part 2, I will present the final 10
of 20 attractively -
valued dividend growth stocks that I felt were currently worthy
of consideration based on attractive or
fair valuation relative to the overall market.
To be clear, I am forgoing two complete years
of dividend payments while waiting for
fair value to manifest.
Therefore, we only had to wait 3 months for
fair value to manifest and essentially would have only had to give up approximately one quarter's worth
of dividends.
Financial Statements Calculating Intrinsic
Value With the Dividend Growth Model An estimate of a dividend - paying stock's fair value can be calculated using accessible data and assumptions with this m
Value With the
Dividend Growth Model An estimate of a dividend - paying stock's fair value can be calculated using accessible data and assumptions with thi
Dividend Growth Model An estimate
of a
dividend - paying stock's fair value can be calculated using accessible data and assumptions with thi
dividend - paying stock's
fair value can be calculated using accessible data and assumptions with this m
value can be calculated using accessible data and assumptions with this model.
The strong growth and cash flow from Humira, the continued development
of their drug pipeline, and management's commitment to returning capital to shareholders through
dividends has increased our estimate
of fair value for the company and changed our holding period from one year to multiple years.
Plugging JNJ's
dividend growth rate into the Gordon Growth Model formula with a 10 % required rate
of return results in an estimated
fair value of $ 103.
A review
of a stock's historical
dividend yield gives us a fourth way to estimate
fair value.
Using a simple Gordon Growth Model calculation starting with the current annual
dividend of $ 2.14, a required rate
of return
of 10 %, and a
dividend growth rate
of 7.5 %, Hershey's
fair value is calculated to be $ 92.02.
We've had a few years where valuations
of companies like P&G have shot up quite a bit despite no growth and they'll definitely be impacted as yields continue to rise and the market prices them back down to
fair value as the
dividends are no longer as appealing.
A quick review
of a stock's historical
dividend yield gives us yet an additional way to estimate
fair value.
There isn't a plethora
of value out there as it pertains to high - quality
dividend growth stocks, but I also don't think that it's impossible to find great stocks trading at a
fair or better price.
Thus, every
dividend increase also increases the
fair value of a stock.
A
dividend will simply reduce Book and
Fair Value,
of course, but I haven't seen any mention
of dividend anywhere else since then, so any confirmation may prove a pleasant surprise and hopefully attract some fresh attention and investors... Second was EIIB's retirement
of 3.3 %
of its Shares in Nov 2009 through a tender offer at GBP 7p, a premium
of 141 % to the market price at the time!
Case in point: While I expected Green's NAV (& in turn, my
fair value estimate) to appreciate, I'm impressed to see a total NAV return (inc.
dividends)
of almost 60 % (18.6 % pa) here since early - 2014!
Introduction This is the fifth
of a five - part series presenting 50
dividend growth stocks that I have screened for current
fair value.
Introduction This is the second
of a five - part series presenting 50
dividend growth stocks that I have screened for current
fair value.
Key input assumptions used to estimate the
fair value of stock options include the exercise price
of the award, the expected option term, the expected volatility
of the Company's stock over the option's expected term, the risk - free interest rate over the option's expected term, and the Company's expected annual
dividend yield.
Scenario A: Buy at
Fair Value In this scenario, the investor buys 100 shares at $ 27, for a total investment
of $ 2,700 and a total
dividend income stream
of $ 180 / year.
If you want to calculate the
fair value of a stock using the
Dividend Discount Model (which is explained in significantly more detail in the book), and you estimate that the dividend will grow by 5 % per year, and you're using 12 % as your discou
Dividend Discount Model (which is explained in significantly more detail in the book), and you estimate that the
dividend will grow by 5 % per year, and you're using 12 % as your discou
dividend will grow by 5 % per year, and you're using 12 % as your discount rate.
Over the longest term, your results will be superior either because the market eventually returns the price to its
fair value, or because for as long as its under its
fair value, your reinvested
dividends or the company's share repurchases will be able to buy more shares for the same amount
of money.