I don't think they are exactly cheap. But some companies are never or rarely available at a fair price.
You're not getting a bargain at the current price. I see a slight overvaluation.
You have to consider: with a current dividend yield of 0.83% and an annual increase in the dividend of 15%, you will have a personal dividend yield (YoC) of ~ 5.9% after 15 years. Only then will the compound interest effect really come into play. If the company continues to increase its dividends at this rate for another 25 years, your YoC would be 23.8%.
You're not getting a bargain at the current price. I see a slight overvaluation.
You have to consider: with a current dividend yield of 0.83% and an annual increase in the dividend of 15%, you will have a personal dividend yield (YoC) of ~ 5.9% after 15 years. Only then will the compound interest effect really come into play. If the company continues to increase its dividends at this rate for another 25 years, your YoC would be 23.8%.
•
11
•
••