Oy this is some number porn ! | 5c | 6c | 7c | 8c | 9c |
| $.60/yr | $.72/yr | $.84/yr | $.96/yr | $1.08/yr |
4% yield | $15 | $18 | $21 | $24 | $27 |
5% yield | $12 | $14.4 | $16.80 | $19.20 | $20 |
6% yield | $10 | $12 | $14 | $16 | $18 |
7% yield | $8.57 | $10.28 | $12 | $13.71 | $15.42 |
8% yield | $7.50 | $9 | $10.50 | $12 | $13.50 |
Usually dividend stocks even out to 5% for a payout ratio.
So if Cardinal commits to a sleazy (sarcancism) 5c/month dividend, theoretically we should expect the stock price to correct (catch up) to $12!
Thats a 50% gain from here, and how long do we have to wait 3 months ?
BARGAIN BARGAIN BARGAIN BARGAIN
Now since wti has held nicely above $100, what would Cardinal committ to for a monthly dividend ?
Which ever number you like, follow it down to what you think the payout ratio may settle at and Viola !
I like the comfortable $16.80 estimate myself !
Ishmail Izbig