With $2 div in 2015 as the base year & 10% annual growth thru 2020. 2(1.1)^5 = $3.20 div. approx
let's say they increase the div by 6% next year. = 2[ (1.06)(1+i)^4 ] = 3.20 i = 10.84%
So they need to have just under 11% div growth over the following four years to hit the initial guidance.
Very attainable yet far from a layup.
If your a believer in the future growth of Nat gas then hold on tight or buy more. If you are a doubter then bail or short.
I'm long and added last week. I won't pick the bottom but I will buy lower and have been adding to avg down.
If it goes significantly lower that would bite but if I sell and it goes a little lower But ultimately rebounds and makes new all time highs that would burn 10x as much.
Coal being killed due to increasing Nat gas consumption, listen to coal or rail companies earnings calls. We have LNG exports just around the corner, wait til it starts being used in transportation which 70% of our imported oil is used for. Petrochemical are loving the Nat gas price and their demand will increase.