- For Part III, I provided sensitivity modeling of both investment value growth and dividend growth under a range of share price and dividend growth projections at a constant PE ratio.
- But changes in PE ratios (highs and lows) can have a hugely significant effect on outcomes for ending investment values and yearly dividend amounts.
- “Dividend Aristocrats”, such as JNJ, continue to steadily increase dividends in good times and bad whether PE ratios are high or low.
- For this Part IV, I provide modeling of both investment value growth and dividend growth under a range of PE ratios to illustrate the effect of market share price fluctuations.
- Having increasing dividend amounts to re-invest in a time of low PE ratios, in a rock solid company like JNJ, is the “stuff of dreams” for a DGI investor.