tag:blogger.com,1999:blog-7224408473039318372.post2390464913572421396..comments2016-08-26T08:02:46.182-05:00Comments on Dividend Growth Stocks: Dividend Stock Bubble: Is It Even Possible?D4Lhttp://www.blogger.com/profile/01335749596803945185noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-7224408473039318372.post-73201364813774119492012-03-07T13:52:31.797-06:002012-03-07T13:52:31.797-06:00"Bubble" is the investment world's v..."Bubble" is the investment world's version of the "gate" in political scandals (watergate, iran/contragate, etc.) We can use the term bubble as a catchphrase, so to speak, but that's about it.<br /><br />Dividend stocks might or might not be in a bubble. The logic used above is difficult to refute, except to observe, when did the stock market ever operate on logic?<br Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7224408473039318372.post-77455239280343688102012-03-07T08:26:40.645-06:002012-03-07T08:26:40.645-06:00Hi D4L,
The formula is correct. It looked odd, b...Hi D4L, <br /><br />The formula is correct. It looked odd, but the results are accurate, hence my apologies for implying that you had an error.<br /><br />My hope was to see your actual calculation for MCD, but fair enough - proprietary model is for your to keep or share as you deem appropriate.<br /><br />Regards,<br />AverageCFAAverageCFAhttp://www.blogger.com/profile/12399935852770219648noreply@blogger.comtag:blogger.com,1999:blog-7224408473039318372.post-40635525572353811512012-03-06T17:58:17.005-06:002012-03-06T17:58:17.005-06:00Paul: When you get to the link on calculated fair ...Paul: When you get to the link on calculated fair values see also the links on Mid-2 Price and the NPV MMA Price. That provides all the info on how I calculate fair value.<br /><br />Line 19 is correct in D4L-PreScreem.xls. It is directly calculating the compounding effect of the growing dividend yield. Consider the following:<br /><br />1000*1.024*1.024*1.024*1.024 = 1099.51<br />1000*10.24^4 = D4Lhttp://www.blogger.com/profile/01335749596803945185noreply@blogger.comtag:blogger.com,1999:blog-7224408473039318372.post-84853836210863628302012-03-06T13:44:04.605-06:002012-03-06T13:44:04.605-06:00Hi DGS,
It is somewhat unclear why 6 stocks aboce...Hi DGS, <br />It is somewhat unclear why 6 stocks aboce are called attractive. I've followed the link for "calculated fair values" to find a 5-option way of mixing Mid-2 Price and NPV MMA Price, each of which are separately explained and later referred to D4L-PreScreen. The spreadsheet is an interesting tool, but it may contain an error the stock balance calculation in line 19 (AverageCFAhttp://www.blogger.com/profile/12399935852770219648noreply@blogger.comtag:blogger.com,1999:blog-7224408473039318372.post-26188872888100858092012-03-06T07:40:34.203-06:002012-03-06T07:40:34.203-06:00The whole analysis overlooks an evaluation of what...The whole analysis overlooks an evaluation of what is considered an acceptable dividend yield for a stock to be considered a "dividend stock". That number has declined, following the decline in bond yields. If there is considered to be a bubble in the US Treasury market, then the same factors have created the bubble in the "dividend stock" evaluations. Yes, current yield Anonymousnoreply@blogger.com