Comments on: Stock Analysis: Walgreen Co (WAG) * http://dividendsvalue.com/1390/stock-analysis-walgreen-co-wag/ Dividend Investing & Value Investing For A Superior Portfolio Mon, 11 Apr 2011 13:45:49 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: MG (moneygardener) http://dividendsvalue.com/1390/stock-analysis-walgreen-co-wag/comment-page-1/#comment-2546 MG (moneygardener) Mon, 25 Aug 2008 20:26:00 +0000 http://dividendsvalue.com/1390/stock-analysis-walgreen-co-wag/#comment-2546 makes sense... makes sense…

]]> By: Dividends4Life http://dividendsvalue.com/1390/stock-analysis-walgreen-co-wag/comment-page-1/#comment-2545 Dividends4Life Mon, 25 Aug 2008 17:50:00 +0000 http://dividendsvalue.com/1390/stock-analysis-walgreen-co-wag/#comment-2545 MG: Sorry, ALF above should be AFL (AFLAC). Doing too much during lunh. :)<br/><br/>D4L MG: Sorry, ALF above should be AFL (AFLAC). Doing too much during lunh. :)

D4L

]]> By: Dividends4Life http://dividendsvalue.com/1390/stock-analysis-walgreen-co-wag/comment-page-1/#comment-2544 Dividends4Life Mon, 25 Aug 2008 17:46:00 +0000 http://dividendsvalue.com/1390/stock-analysis-walgreen-co-wag/#comment-2544 MG: I think WAG is a compelling investment for capital appreciation, but doesn't work in my dividend/income investing framework.<br/><br/>My model does consider dividend growth. It is designed to use conservative estimates. For WAG my model calculates a 11.9% dividend growth rate, but with a 1.21% yield (at the time of the analysis) it wasn't enough. <br/><br/>Running the numbers through my D4L-PreScreen.xls model and back-solving for the needed growth rate to yield a $3,000 NPV MMA Differential WAG, the needed growth rate I get 19.3%. This is similar to some of the other low-yielding stocks that I have looked at (ALF & LOW).<br/><br/>Again, I am not saying WAG is a bad investment, but it quantitatively does not meet my criteria as a dividend stock. Of coarse, everything is dependent on my underlying assumptions.<br/><br/>Best Wishes,<br/>D4L MG: I think WAG is a compelling investment for capital appreciation, but doesn't work in my dividend/income investing framework.

My model does consider dividend growth. It is designed to use conservative estimates. For WAG my model calculates a 11.9% dividend growth rate, but with a 1.21% yield (at the time of the analysis) it wasn't enough.

Running the numbers through my D4L-PreScreen.xls model and back-solving for the needed growth rate to yield a $3,000 NPV MMA Differential WAG, the needed growth rate I get 19.3%. This is similar to some of the other low-yielding stocks that I have looked at (ALF & LOW).

Again, I am not saying WAG is a bad investment, but it quantitatively does not meet my criteria as a dividend stock. Of coarse, everything is dependent on my underlying assumptions.

Best Wishes,
D4L

]]> By: MG (moneygardener) http://dividendsvalue.com/1390/stock-analysis-walgreen-co-wag/comment-page-1/#comment-2543 MG (moneygardener) Mon, 25 Aug 2008 15:26:00 +0000 http://dividendsvalue.com/1390/stock-analysis-walgreen-co-wag/#comment-2543 At $17.27 WAG would sport a P/E ratio of about 8x earnings. What a steal!!! Absolutely never going to happen.<br/><br/>It sounds like this stock would never fit into your method of stock analysis. Growth must not be accounted for, for low dividend stocks. At $17.27 WAG would sport a P/E ratio of about 8x earnings. What a steal!!! Absolutely never going to happen.

It sounds like this stock would never fit into your method of stock analysis. Growth must not be accounted for, for low dividend stocks.

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