OT--a hold forever stock--OT | CLNY Message Board Posts

Colony Capital, Inc.

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Msg  8952 of 8977  at  2/14/2020 4:57:40 PM  by

dar200


OT--a hold forever stock--OT

I first bought NEE (then FPL) in Feb 2006. They just announced a 12% increase in their dividend to 1.40 from 1.25.
 
The comparable dividend in 2006 was 37.5 cents. Trusty calculator, when the present value is 37.5 cents and the future value is 140 cents in 14 years, what is the average annual compounded rate of increase? Answer = 9.866%. Not bad when inflation has been well under 3% during this period.  My kind of stock.
 
I paid 40.97 for that first lot in 2006. The stock closed today at 278.52, another all-time closing high. Trusty calculator says that's an average annual compounded rate of increase of 14.672%.
 
I wish my entire portfolio (other than SUI) just plodded along like NEE. It's another I have to die with so my kids can escape the latent income tax (at least until Bernie gets elected).
 
BTW, when thinking about the entry price for a very long term hold, it really makes little difference to the overall returns if I had paid 5 dollars (12%) more or less for this first lot. If I paid 45.97 instead of 40.97, the dividend increase percents would be the same and the average annual price increase percent would be 13.73% instead of 14.67%.......less than 1 percentage point difference.
 
 
 


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