Money and Finance
As part of building a diversified dividend growth portfolio, it's important to own not only a number of companies but also companies that operate in a variety of industries. Previously I've looked at some restaurants, beverages, and consumer staples companies but today I wanted to examine an industrial powerhouse and dividend contender with 20 consecutive years of dividend growth: United Technologies (NYSE:UTX). Shares closed trading on Friday, October 31st at $107.00, giving a current yield of 2.21%.
Discounted Earnings:
Analysts followed by Yahoo!Finance expect United Technologies to grow earnings 11.08% per year over the next 5 years and I've assumed they can grow at 8.31% (75% of 11.08%) for the next three years and at 5.00% in perpetuity. Running these numbers through a discounted earnings analysis with a 10% discount rate and summing over 30 years yields a fair value price of $153.54. This means the shares are trading at a 30.3% discount to the discounted earnings analysis.
Click here to read the full analysis of United Technologies Corporation at Seeking Alpha.
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Money and Finance
Can United Technologies Corporation Move Your Portfolio?
As part of building a diversified dividend growth portfolio, it's important to own not only a number of companies but also companies that operate in a variety of industries. Previously I've looked at some restaurants, beverages, and consumer staples companies but today I wanted to examine an industrial powerhouse and dividend contender with 20 consecutive years of dividend growth: United Technologies (NYSE:UTX). Shares closed trading on Friday, October 31st at $107.00, giving a current yield of 2.21%.
Discounted Earnings:
Analysts followed by Yahoo!Finance expect United Technologies to grow earnings 11.08% per year over the next 5 years and I've assumed they can grow at 8.31% (75% of 11.08%) for the next three years and at 5.00% in perpetuity. Running these numbers through a discounted earnings analysis with a 10% discount rate and summing over 30 years yields a fair value price of $153.54. This means the shares are trading at a 30.3% discount to the discounted earnings analysis.
Click here to read the full analysis of United Technologies Corporation at Seeking Alpha.
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Johnson & Johnson (JNJ) is well known around the dividend growth investing community with over 50 consecutive years of dividend increases. Chances are there's Johnson & Johnson products in your medicine cabinet right now and if you've...
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As a dividend growth investor, consumer staples companies are great because people need to brush their teeth, clean their house and wash their body whether the economy is in boom or bust mode. It's the consistency in their operations and steady,...
- Does The Procter & Gamble Company Belong In Your Portfolio?
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- Is Family Dollar Stores, Inc. A Bargain?
I'm always on the lookout for new to me dividend growth companies and recently received a request to do a full analysis on Family Dollar Stores, Inc. (FDO). What was really surprising is that Family Dollar Stores has a 38 year history of increasing...
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