What if Texas Pacific Land Trust (TPL) were to retain a dividend policy that was in place from 1982 to 2016?
This means that we took the dividend in 1982 and 2016, determined the compounded annual growth rate and applied it to Edson Gould’s Altimeter until 2020. The outcome provides an alternative view to our prior work on the downside risk to TPL and supports the claim by a commenter on SeekingAlpha.com that TPL could decline to approximately $25.
1982 to 2013
2009 to 2020
How We Did it
- Obtained the dividend and price data from Yahoo!Finance.
- Deleted dividend payments that were inconsistent (i.e. extra/special payments).
- Calculated CAGR at MoneyChimp.com in the period from 1982 to 2016.
- Applied CAGR of TPL to Gould’s Altimeter.
see also: All Prior reviews on TPL