Monday, February 19, 2018

4 Dividend Stocks With Room To Increase Their Payout

I currently track over 200 dividend growth stocks in my D4L-Database and have determined some of the lower rated stocks could be buys if the companies simply chose to increase their dividends. For various reasons their management has elected keep a low payout ratio and deploy the excess cash elsewhere.


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Sunday, February 18, 2018

Weekend Reading Links - February 18, 2018

For your weekend reading pleasure, the articles listed below contain some of the best dividend and value investing insights found on the web. They were written by various members of the Dividend Investing and Value Network over the past week:


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Friday, February 16, 2018

Diageo: Shiny Bottles Lead to Shiny Dividends

Summary

  • Diageo is a leader in premium spirits industry, it will surf the current economic tailwind.
  • Emerging markets start to get some traction as middle class seeks recognitions and claim a higher status through their lifestyle.
  • Unfortunately, DEO is overpriced right now.

Investment Thesis

DEO will benefit from the good standing of the current economy. Consumers around the world are optimistic in their future, and they are more willing to spend. DEO enjoys strong pricing power, and its brand portfolios are protected with premium names. Diageo also invests in an important sales team in order boost its product’s popularity at all times. The company will continue to pay a solid 2.50% dividend. Finally, the rising income in emerging markets will eventually lead to additional customers for Diageo and its premium spirits. Unfortunately, the DDM calculation doesn’t justify the current price.


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Thursday, February 8, 2018

BUD-WEIS-ER, Frogs & Fuss Aren’t Enough for Me to Drink

Summary

  • After its merger with SAB Miller, Anheuser-Busch InBev has proven to the world that it will “own the beer market” across the world.
  • The company is dominant in many countries with 50%+ market share in Brazil, Latin America and Belgium.
  • Unfortunately, the dividend perspectives don’t justify the current price.

Investment Thesis

Do you remember those BUD-WEIS-ER frogs in the company’s commercial a long time ago? I’m not sure I was old enough to drink beer back then but I surely enjoyed the frogs. In fact, Anheuser-Busch InBev (BUD) always had this magic touch to create viral ads. Over the years, the beer maker has expanded its brand portfolio to the limit of the world.
BUD is a leader in a stable market that is not ready to decrease. The company is producing over 500 million of hectolitres (as compared to 204 million for Heineken) and enjoys economy of scale. The brewer will continue to grow through acquisitions and will also increase its presence in emerging market, notably in China. BUD is a solid dividend payer with a 3.50% yield offering income seeking investors the opportunity to invest in a well-diversified company. Unfortunately, BUD seems overvalued at this time.


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