I added a new position to my portfolio with the purchase of Comcast Corporation (CMCSA)
50 shares @ $33.58 on 6/18/2018.
This increases my forward 12-month dividend income by $38.00 to a total of $5,811.18
I also updated my portfolio page to reflect the change.
I do not know about the area where you live, but here in south Florida, the majority of homes has Comcast as there internet provider and cable provider. I am also a Comcast customer myself. When I saw that Comcast has dropped in stock price, I knew that I should do more research on this company. I love to own companies that I am currently a customer of.
Comcast has dropped in price from a high of $44.00 to as low as $31.26. That’s almost a 27% drop in less than 6 months. That’s when I knew I should research more on this company and I am glad I did.
The company has been growing dividends at a fantastic rate. The 5-year dividend growth rate sits at 14.9%. The 3-year dividend growth rate sits a little lower at 11.9%. However, Comcast just recently increased its dividend by a whopping 20.6% earlier this year. Not only are they increasing dividends at a great rate, but based on the dividend payout ratios, they can continue to increase it at a double-digit rate for years to come.
Comcast has a dividend payout ratio of 31% based on 2017 earnings which were $2.06. As you can see in the graph below, 2018 and 2019 are expected to be higher $2.50 and $2.75 respectively.
Based on 2018 earnings of $2.50 and a 10 year normal PE of 18.8, Comcast fair valued is $47.00. This tells us that the stock is 40% undervalued.
The best part of this analysis is that the analysts have been spot on in predicting Comcast earning since 2013.
If prices stay at this level and do not run up, I do plan to add more shares. This is why I think that Comcast stock is a BUY.
What do you think of the company? Plan on owning it? or why not? Are you also a Comcast customer?
Thanks for reading, and don’t forget to connect with me.
Image by Sira Anamwong at FreeDigitalPhotos.net