Tag Archives: mo

The magic dividend formula – Intel & Altria

In my first post on the magic dividend formula I discussed how to estimate forward returns using the formula. The formula only requires the estimation of one unknown variable which makes it very easy to use. Today I want to discuss a different form of the exact same formula and a couple of ways to use it in your investing. The magic dividend formula can be re-written into a form that solves for the price of the stock. Here it is; P = Annual Dividend / (Required rate of return – Dividend growth rate) This the exact same formula as … Continue reading

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Christmas wish list, part one

At this time of year our thoughts usually turn to the holiday festivities, family gatherings and such. While no different for me, I usually have one more activity at this time of year that puts me in the Christmas spirit, the creation of an investing wish list. Making an investment wish list, in this case a Christmas wish list is a great investment activity. Its like investment practice, or studying for an exam. With such a list at hand when an opportunity presents itself you will be ready to pounce. The list does not need to be detailed but should … Continue reading

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