The objective of my dividend portfolio is to make invest
The whole reason for any business to exist is to generate sales revenue and make more profits. At a minimum, the para
- EPS from continuing operation
- Dividend per share
- Cash flow from operations
Quality of Dividends
- Dividend growth rate: This should be consistent with growth in earnings per share.
- Duration of dividend growth: Dividends should have grown continuously for past 10 years.
- 4 year rolling dividend growth rate for past ten years: It is preferred to be greater than 10%.
- Payout factor: It should be less than 50%.
- Dividend cash flow vs. inco
mefrom MMA: Dividends should be more than inco mefor 10 years of ti meperiod.
Fair Value Calculation
This sections determine the what price should I pay to buy a given stock
- Net present value (NPV) price based on 20 year Discounted Cash Flow (DCF)
- Average high yield price calculated based on past 10 years
- Pricing based on past 10 year relative price-to-earnings ratio
- Pricing based on price-to-earnings ratio of 12
- Graham number
I have recently added this in my stock evaluation process. Here, I use the corporations financial health to assign the risk factor or based on risk factor what should be pricing. This is calculated as:
[Price + Yield + Payout Factor + Gross Margin + Operating Margin + Financial Leverage] / 6
I am in process of calculating this risk para
I make qualitative judg
Acknowledgment: The “4 year rolling dividend growth rate” and “dividend cash flow vs. MMA inco