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Strategies & Market Trends : Value Investing

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To: E_K_S who wrote (46768)2/28/2012 3:28:19 PM
From: Spekulatius  Read Replies (3) of 78509
 
re ATO@30.8$, PEP @63.12$

I followed you into ATO at 30.8$. low return (high single digits/year) but very low risk sort of situation. I figure that a 4.4% dividend yield and a 5% (maybe growth rate/year) would lead to an 9-10% estimated return (assuming multiples don't change) in my very simlpe dividend growth model.

PEP is somewhat similar, with less initial dividend (3.3%) yield but a higher growth components (5-10% range). If we are lucky we could do low single digit returns over the years. I think I'll make that a permanent position in my and plan to add from time to time. Got some for my wife's "sleep well IRA" and my own not so sleepy Roth IRA <g>.
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