Money and Finance
Today I purchased 50 shares of Tower Group, Inc. (TWGP) at $23.43 / share in my Roth IRA. I got a little impatient in waiting for my price and raised my target up a little bit which I shouldn't have done since the market would have given me the shares cheaper just a few hours later. Live and learn.
TWGP currently pays $0.75 / share per year in dividends. This will pay me $37.50 a year. TWGP is a dividend challenger with 5 years of dividend growth that has been rapid. The 5 yr dividend growth rate is 47% per year. While I don't expect that to continue I can foresee them continuing to raise around 20% per year. My current YOC is 3.18% and if they can keep something close to a 20% growth rate for another 5 years my YOC would jump to 7.91%. The most compelling reason that I bought in besides the potential for rapid dividend growth is the fact that the company is currently trading at a discount to book value and a 45% discount to the Graham number. They've grown revenue at 37.20% rate for the past 4 years with a 48% jump over the last year. They will have their 2011 year end results later this week. They're normalized PE for the last for years is currently 7.84. Unfortunately I'm getting involved with yet another financial stock. I just see too much value in some of the financials still. Of course I still have a long time frame seeing as how I'm only 28.
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Money and Finance
Recent Buy
Today I purchased 50 shares of Tower Group, Inc. (TWGP) at $23.43 / share in my Roth IRA. I got a little impatient in waiting for my price and raised my target up a little bit which I shouldn't have done since the market would have given me the shares cheaper just a few hours later. Live and learn.
TWGP currently pays $0.75 / share per year in dividends. This will pay me $37.50 a year. TWGP is a dividend challenger with 5 years of dividend growth that has been rapid. The 5 yr dividend growth rate is 47% per year. While I don't expect that to continue I can foresee them continuing to raise around 20% per year. My current YOC is 3.18% and if they can keep something close to a 20% growth rate for another 5 years my YOC would jump to 7.91%. The most compelling reason that I bought in besides the potential for rapid dividend growth is the fact that the company is currently trading at a discount to book value and a 45% discount to the Graham number. They've grown revenue at 37.20% rate for the past 4 years with a 48% jump over the last year. They will have their 2011 year end results later this week. They're normalized PE for the last for years is currently 7.84. Unfortunately I'm getting involved with yet another financial stock. I just see too much value in some of the financials still. Of course I still have a long time frame seeing as how I'm only 28.
- Valuation Of Pepsico Inc. - The Long Case Looks Strong
Last week management of PepsiCo. Inc. (PEP) announced earnings for 4Q and full year 2013. The results were fairly mixed with revenue increasing around 1% over 2012. North American soda consumption continues to be a drag on the growth of the...
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Yesterday I bought 9 shares in Walmart at a price of $57.71 in my Roth IRA. Recently, reports of Walmart bribing officials in Mexico for preferential treatment have been released. While this is concerning, it's one of those situations where everyone...
- At&t Stock Analysis
I ran AT&T through my screening process to see where it currently stands. AT&T is closed on Friday 3/23/12 at $31.52. DCF Valuation: Analysts expect AT&T to grow 7.78% per year for the next 5 years and I've assumed that after that they will grow at...
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I've started to try and consolidate my stock analysis spreadsheets to make it easier for myself to cruch numbers. I like JNJ and would love to get in but right now it seems that it's a little overvalued and there's just too many question marks...
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Dividend investors would be wise to focus not just on a stock's current yield, but also on the long-term growth potential of its dividends. That's because strong businesses that consistently raise their dividend payouts reward shareholders with...