03-19-2015, 09:03 AM
(03-18-2015, 11:48 PM)EricL Wrote: I believe that trailing PE isn't taking into account one time adjustments to earnings due to the merger with Alliance Boots. The PE on 2015 earnings is about 24 and forward PE on 2016 estimates is 19.6. Still pretty high, but not so high that I am thinking about selling anything yet.
Yup, I knew about the adjustment. Forward P/E was still a little high and the potential acquisition still has me wondering. Maybe I was looking for an excuse to add some cash to boost the dividend stream. Both are still about where I want them to be in both our portfolios.
In the meantime, RTN's recent dividend hike made up for 2/3 of the loss of the dividend from those shares for me. My wife's cost basis actually went down since we account for them using FIFO.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan