I added a new position to my portfolio Williams-Sonoma, Inc. (WSM).
25 Shares @ $48.90 on 6-15-2017
This will increase my forward 12-months dividend income by $39.00 to a total of $3,764.02
I updated my Portfolio Page to reflect the change.
I bought 2 out of the 3 from my Stock Consideration post that I did a few week ago. I wanted to go with GILD, which I should have since it is up almost 9% from when I made that post lol. The reason why I did not buy GILD is that I recently found and learn about WSM and I find it less of a risk because of the long divided track record of 12 years.
Here are some numbers to prove why I think it is a great buy right now.
Current PE: 13.74 5-year average PE: 20.2
Forward PE: 12.35
2016 EPS: $3,37
2017 Estimate EPS: $3.55
2018 Estimate EPS: $3.80
Dividend Payout: 44%
Dividend Yield: 3.31% 5-year average: 2.16%
As you see above, the current PE level is much lower than the 5-year average. Even the forward PE level is lower than the current. Also, looking at the current dividend yield which is way over 100 points higher compared to the 5-year average. Theses two matrices show that WSM is undervalued.
With the payout being at a respectable level, it means that there is plenty of money for sustainable mid to high single digit dividend growth rate.
Here we have different Fair Value estimates.
S&P Capital IQ Fair Value: $52.70
Yahoo Price Target: $53.00
My DDM Analysis: $56.47
As you see above, WSM is very much undervalued right now. If it goes further down, I will be buying more.
Thanks for reading, and don’t forget to follow me:
Do you like WSM at these prices? What have you been buying?
Image by Sira Anamwong at FreeDigitalPhotos.net