The last sentence is so wrong. Microsoft went to $55 in the dot com boom , and after the crash in 2001 it took 15 years to get back to $55.
I dont mind paying a small premium, but the current CBA premium is close 40-50%. Current buyers might need to wait 10 years for earnings to get a decent dividend yield.
if you compound the recent dividend by 5% for 10 years, you can $7.57 for a 5.26% dividend yield, and that's not even applying a discount rate!!
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