Money and Finance
As part of building a diversified dividend growth portfolio it's important to own not only a number of companies but also companies that operate in a variety of industries. Previously I've looked at some restaurants, beverages, and consumer staples companies, but today I wanted to examine a consumer goods company that we've probably all put our hands on their products but none of us realize. This dividend champion has 31 consecutive years of dividend growth. Bemis Company, Inc. (NYSE:BMS) closed trading on Thursday, November 6th at $38.83 giving a current yield of 2.78%.
Discounted Earnings:
Analysts followed by Yahoo Finance expect Bemis Company to grow earnings 5.70% per year over the next 5 years and I've assumed they can grow at 5.13% (90% of 5.70%) for the next three years and at 5.00% in perpetuity. Running these numbers through a discounted earnings analysis with a 10% discount rate and summing over 30 years yields a fair value price of $39.58. This means the shares are trading at a 1.9% discount to the discounted earnings analysis.
Click here to read the full analysis of Bemis Company, Inc. at Seeking Alpha.
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Money and Finance
Bemis Company, Inc. Dividend Stock Analysis
As part of building a diversified dividend growth portfolio it's important to own not only a number of companies but also companies that operate in a variety of industries. Previously I've looked at some restaurants, beverages, and consumer staples companies, but today I wanted to examine a consumer goods company that we've probably all put our hands on their products but none of us realize. This dividend champion has 31 consecutive years of dividend growth. Bemis Company, Inc. (NYSE:BMS) closed trading on Thursday, November 6th at $38.83 giving a current yield of 2.78%.
Discounted Earnings:
Analysts followed by Yahoo Finance expect Bemis Company to grow earnings 5.70% per year over the next 5 years and I've assumed they can grow at 5.13% (90% of 5.70%) for the next three years and at 5.00% in perpetuity. Running these numbers through a discounted earnings analysis with a 10% discount rate and summing over 30 years yields a fair value price of $39.58. This means the shares are trading at a 1.9% discount to the discounted earnings analysis.
Click here to read the full analysis of Bemis Company, Inc. at Seeking Alpha.
- Can Johnson & Johnson Cure What Ails Your Portfolio?
Johnson & Johnson (JNJ) is well known around the dividend growth investing community with over 50 consecutive years of dividend increases. Chances are there's Johnson & Johnson products in your medicine cabinet right now and if you've...
- Is Cracker Barrel Old Country Store, Inc. Cooking Up Rewards For Investors?
Cracker Barrel Old Country Store Inc. (CBRL) has been a dividend darling the past few years with huge dividend increases and massive share buybacks while the share price was depressed. If you do a lot of travel by car you're most likely familiar with...
- Colgate-palmolive Company: High Quality But Should You Buy?
As a dividend growth investor, consumer staples companies are great because people need to brush their teeth, clean their house and wash their body whether the economy is in boom or bust mode. It's the consistency in their operations and steady,...
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- Is Family Dollar Stores, Inc. A Bargain?
I'm always on the lookout for new to me dividend growth companies and recently received a request to do a full analysis on Family Dollar Stores, Inc. (FDO). What was really surprising is that Family Dollar Stores has a 38 year history of increasing...