V = E0 + E1 /(1+r) + E2 /(1+r)2 + E3/(1+r)3 + E4/(1+r)4 + E5/(1+r)5 + Disposal ValueEinstein's famous equation: E=mc2
V = E0 + E0 (1+g)/(1+r) + E0(1+g)2/(1+r)2 + … + E0(1+g)5/(1+r)5 + E0(1+g)5/[r(1+r)5]
The earnings after the last period act as a perpetuity that creates regular earnings:
Disposal Value = D = E0(1+g)5/[r(1+r)5] = E5 / r
COP: should you buy before or after the split? -- SeekingAlpha.com
Once COP splits into two companies you have the original $2.64 (perhaps more) dividend plus a competitive $0.40 (per COP share) to boot. Unlike the Abbott Laboratories split in which the dividends of the two companies combined will equal the current payout, COP creates two competitive dividend yields.MLPs: 2011 performance review for 7 high-yield and large cap oil and gas, SeekinAlpha.com, numbers rounded
- Williams Partners, WPZ, 30 percent performance year-to-date
- ONEOK Partners, OKS, 45 percent
- Magellan Midstream, MMP, 20 percent
- Kinder Morgan Energy, KMP, 20 percent
- Enterprise Products, EPD, 10 percent
- Energy Transfer, ETP, -10 percent
- Energy Transfer Equity, ETE, 5 percent
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