Cash machine market stock
Continued stability of cash flows, dividend growth, and share buybacks will reward shareholders going forward. Shares of Home Depot NYSE: In my view, it very much does. This is a very shareholder friendly stalwart that has a demonstrated history of being quite shareholder friendly. When I apply a reasonable dividend growth assumption to the stock, I find that the total returns between now and are too tempting to pass up here.
A Cash Machine in the Stock Market -
I strongly recommend investors who have a long term orientation acquire shares at these levels. Going over the financial history of Home Depot, there's very much to like. Since , revenue has increased at a CAGR of 4. There is very little chance of a credit squeeze with the company in the immediate future.
As important as all of the above is, in my view what is more important is the quality of management, specifically how shareholder friendly they are. In this measure, Home Depot's management is second to none in my view.
This is a management team that we can continue to trust will do well by shareholders.
One of the ways I forecast future prices is to hold all variables but the dividend itself constant and to infer price from that. It's not perfect, but reading the future is obviously a highly challenging task.
At Home Depot, the dividend has grown at a CAGR of Given that the company has done quite well in rewarding shareholders with dividend increases and simultaneous share buybacks, this highly conservative forecast is the least that shareholders could expect in my view. This would signal a bullish breakout from a Descending Triangle Pattern which the shares have formed, and which we believe is a consolidation before the next bullish run. As you know, we like to anticipate technical breakouts when the fundamentals support what we see on the charts.
Today we bought HD Call Options which will provide us with approximately 22x leverage on our LONG trade for option details please visit our website. For longer term investors years not months we believe HD is an excellent addition to any Dividend Growth Portfolio.
That said, the stability of the cash flows, the dividend, and the high rate of share buyback is enough reason to buy the shares at these levels in my view. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it other than from Seeking Alpha. I have no business relationship with any company whose stock is mentioned in this article.
Japan Cash Machine Co Ltd (T) Quote| belucydyret.web.fc2.com
Sometimes our trades last a few days, sometimes a few weeks, sometimes a few months. Please review our trade history listed in our BlogPosts to get a feel for our trading style. REITs Dividend Ideas Dividend Strategy Dividend News Dividend Quick Picks Editor's Picks.
Financial Snapshot Going over the financial history of Home Depot, there's very much to like.
Financial Accounting Principles Guide - Accounting Scholar
Want to share your opinion on this article? Disagree with this article?
To report a factual error in this article, click here. Follow John DiCecco and get email alerts.