Anyone visiting this website on 24 April 2014 (or looking through the section titled "Previous Articles") saw an article on Comcast Corporation outlining my approach to accumulating shares. At the time I wrote -
"A pull back may or may not occur with this stock so I may start a small buying program at this current $51.21 price level. Obviously I'd love to have bought this stock earlier this week at prices below $50.00 so any pull back to that level will only encourage me to load up on this stock. I believe this stock has the potential to move well into the 60s."
I did buy a small number of shares at the then current price and then loaded up even more on the pullback to the high $40s. Today it's in the mid $50s so I thought I'd revisit the stock and see where it's going from here. My main concern when re-looking at companies is to ask myself, "Would I buy this stock at today's prices? And if not, why am I still holding these shares?" The answer to these questions will determine if I add to my position going forward. So let's take a look.
The Company
| Comcast Corporation (CMCSA) operates as a media and technology company worldwide. It operates through Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, and Theme Parks segments. The Cable Communications segment offers video, high-speed Internet, and voice services to residential and business customers under the XFINITY brand name. The Cable Networks segment operates national cable networks, which provide entertainment, news and information, and sports content; regional sports and news networks; international channels; and cable television production operations, as well as owns digital media properties. The Broadcast Television segment operates NBC and Telemundo broadcast networks, NBC and Telemundo owned local broadcast television stations, and broadcast television production operations, as well as owns digital media properties. The Filmed Entertainment segment produces, acquires, markets, and distributes live-action and animated filmed entertainment under the Universal Pictures, Focus Features, and Illumination names. The Theme Parks segment operates theme parks; studios; Island of adventures; and a dining, retail, and entertainment complex. Comcast Corporation was founded in 1963 and is headquartered in Philadelphia, Pennsylvania. (Daily Chart) (Weekly Chart) | 1 September 2014 Price $54.72 1yr Target $62.71 1yr Cap Gain 14.60% Dividend $0.90 Yield 1.64% 1yr Tot Return 16.24% 5yr DGR 26% 3yr DGR 28% Payout Ratio 31.69% Beta 1.24 EPS (ttm) $2.84 EPS next yr $3.28 P/E 19.27 PEG 1.13 ROA 4.80% ROE 14.70% |
The Fundamentals
The fundamentals remain the same as they were when they were documented in the earlier article. What has basically changed is that the stock has moved up from $51.21 to $54.72 (+6.85%) from the previous article (even more if you bought on the pullbacks below $50 like I did). More importantly, the estimated one year target price has moved up from $60.46 to $62.71 (+3.72%). This means that the stock is estimated to increase 14.60% more from here. Adding in the current dividend yield of 1.64% and the one year total shareholder return is 16.24%. This is an excellent one year return for any stock!
Finally, considering that the stock has 3 and 5 year dividend growth rates of 28% and 26%, this stock becomes a dividend growth investor's dream.
Finally, considering that the stock has 3 and 5 year dividend growth rates of 28% and 26%, this stock becomes a dividend growth investor's dream.
Conclusion
If I didn't already own this stock I'd be buying it at this price. Therefore that tells me that this is a stock that I will not only continue to hold but will continue to add to my holdings. I'm already up well over 6% on this stock and now there's the potential to be up another 14% this next year. All the while I'll be watching the dividends grow at a very fast and very nice pace.
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