Tuesday, January 7, 2014

K-Green Trust

K-Green Trust is a stock I have blogged about in the past as well.

The reason for today's post is that a friend asked me to estimate its value and potential return at current prices.

Basically the share has not moved in the last one year, if you look at the yearly return of 0%!.

However, what it shows is that the share had increased to 1.125 and has lost the gain from April 2013 to now.

This was largely after the initial taper tantrum of markets in Apr-May of 2013.

Broadly, we only have three years of dividend data.

Using that, it seems that the stock is priced for 9.4% return at a purchase price of 1.04.

This will be through a dividend yield of 7.52% and a dividend growth rate of 1.87%.

So, if you are looking to buy a share for 9.4% returns per year for life, this would be one to look at.

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