Looking at possible 3 year returns (data from FastGraphs based on current P/OCF, includes dividends)treva84 wrote: ↑Feb 12th, 2018 3:37 pm
However thinking about this more, most investors would probably share the above sentiment, which would suggest on a relative basis CPX may be more attractive as more people shun it. Also with the high dividend (~7%) and management's 7% growth target, if you were to buy this and DRIP it you could do quite well assuming share prices remain suppressed in the short term and the dividend isn't cut in the medium to long term.
- FTS - 7-8% annualized (assumes no multiple expansion)
- EMA - ~ 17% annualized (assume multiple expansion to historic norm); ~9% with no multiple expansion
- CU - ~ 18% annualized (assumes no multiple expansion)
- CPX ~ 14% (assumes no multiple expansion).
CPX trades on the cheapest P/OCF (5) compared to the others. Risky but also relatively cheap!