" if one assumes that dps will move back to previous levels."
That's the key point.
Some companies haven't had their dividends go back to pre-GFC levels yet. While it's certainly possible that it will at some time in the future, I wouldn't make an investment choice using this assumption. (That's like the old argument that something must be a bargain just because it's cheaper than it used to be.)
Even if it does reach that level, that point may be a significant number of years away. If relying on the dividend, I'd suggest re-casting what you believe their earnings are likely to be in the near future, then determining what dividends they will have the capacity to pay.
COF Price at posting:
78.7¢ Sentiment: None Disclosure: Held
