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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: geoffrey Wren who wrote (6479)	11/17/2010 9:14:11 AM
From: Max Fletcher	Respond to of 34328

Hi Geoffrey, you raise an interesting question. However doesn't his methodology attempt to place a fair value on future dividend distributions (which correlate closely to free cash flow from operations)? The value today of that future cash stream is what he's trying to guage and seems to be a good way to value the company. Arguably in valuing a company it shouldn't matter whether the free cash flow is retained by the company or paid out as distributions. I admit to being not overly familiar with REITs and haven't the time to dig into it at the moment (I do have a day job LOL). In any case perhaps others will weigh in. Thank you for the question. Max we will provide a cash flow multiplier to dividend distributions utilizing the same formulas we would typically apply to earnings-per-share on a traditional company. Then we will produce F.A.S.T. Graphs™ on each REIT covered correlating stock prices to our dividend multiplier.