Wednesday, July 15, 2015

Recent Buy: NSC




Chugga Chugga Chugga Chugga CHOO CHOO. I had a toy train set as a child...but I had to give it away because my family was too poor to buy the batteries. On Wednesday July 15, 2015, I bought 11 shares of NSC at $87.70/share for a total of 971.70.

I've been scanning the market for deals and the railroad companies have been beaten down lately. It went down between UNP and NSC. I bought NSC for the higher yield and more shares.  Dividend Diplomat has a great article on why you should buy NSC. Link here

I have been learning how to calculate DDM so below are my quick and dirty math. I'm still working on how to calculate DCF.

Dividend Discount Model

Dividend Growth rate over 5 years=11.3%
Dividend Per share=$2.36
Discount rate= 14%

Equals a fair value of $87.41.

S&P has NSC at 4 stars buy with a fair value of $105.60 with a 12 month target of $120.00.


LOYAL3 Monthly Buy

My automatic monthly investments. 

$10 KO
$10 K
$10 WMT
$10 WMT
$10 SBUX
$10 KHC
$10 UL

My 12 month forward dividend stands at $1,766.75+FCISX dividends. I get paid this Saturday. I'm tempted to buy 11 more shares.

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