Money and Finance
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 the old-timey restaurant/gift shop combination stores. It's' down home country cooking is great for the road weary traveler. Every now and then I get in the mood to venture away from the tried and true dividend growth companies and search for new-to-me companies to research and follow. As a dividend growth investor seeking to reach financial independence it's usually the new-to-me companies that are providing much higher dividend growth rates which is just icing on the cake. Cracker Barrel Old Country Store Inc. closed trading on Wednesday, May 28th at $101.14 giving a current yield of 3.95%.
Discounted Earnings:
Analysts followed by Yahoo!Finance expect Cracker Barrel to grow earnings 10.10% per year over the next 5 years and I've assumed they can grow at 7.58% (75% of 10.10%) for the next three years and at 4.00% 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 $114.95. This means the shares are trading at a 12.6% discount to the discounted earnings analysis.
Click here to read the rest of the analysis on Seeking Alpha.
If you'd like to receive posts via email you can do so here or on the Subscribe page at the top of this blog. As an email subscriber you'll be the first to know about ideas that are running around in my head for the blog. Also make sure to follow me on Twitter @ JC_PIP to get real time updates of purchases and what I'm reading.
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Money and Finance
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 the old-timey restaurant/gift shop combination stores. It's' down home country cooking is great for the road weary traveler. Every now and then I get in the mood to venture away from the tried and true dividend growth companies and search for new-to-me companies to research and follow. As a dividend growth investor seeking to reach financial independence it's usually the new-to-me companies that are providing much higher dividend growth rates which is just icing on the cake. Cracker Barrel Old Country Store Inc. closed trading on Wednesday, May 28th at $101.14 giving a current yield of 3.95%.
Discounted Earnings:
Analysts followed by Yahoo!Finance expect Cracker Barrel to grow earnings 10.10% per year over the next 5 years and I've assumed they can grow at 7.58% (75% of 10.10%) for the next three years and at 4.00% 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 $114.95. This means the shares are trading at a 12.6% discount to the discounted earnings analysis.
Click here to read the rest of the analysis on Seeking Alpha.
If you'd like to receive posts via email you can do so here or on the Subscribe page at the top of this blog. As an email subscriber you'll be the first to know about ideas that are running around in my head for the blog. Also make sure to follow me on Twitter @ JC_PIP to get real time updates of purchases and what I'm reading.
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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...
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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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