Money and Finance
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 the dividend to shareholders. Family Dollar Stores is a major player in the discount retail space operating over 8,000 stores throughout the United States. Shares of Family Dollar Stores closed trading on Friday, April 11th at $56.10 giving a current yield of 2.21%.
Discounted Earnings:
Analysts followed by Yahoo!Finance expect Family Dollar Stores to grow earnings 3.15% per year over the next 5 years and I've assumed they can grow at 2.75% 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 $44.62. This means the shares are trading at a 25.7% premium to the discounted earnings analysis.
Click here to read the rest of the analysis over on Seeking Alpha.
I've updated my Stock Analysis page to include this analysis.
If you'd like to receive posts via email and sign up for my newsletter you can do so here or on the Subscribe page at the top of this blog. As a post/newsletter subscriber, you'll be the first to know about ideas that are running around in my head for the blog.
- 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,...
- Does The Procter & Gamble Company Belong In Your Portfolio?
It's time to update my valuations on some of the dividend growth favorite consumer staples companies. Consumer staples companies are great for dividend growth investors because people need to wash their clothes and clean their house whether...
- How Yummy Is Yum Brands' Valuation?
Last week I updated my valuation of McDonald's Corporation (MCD) and the price appears to offer a decent value. You can read the full analysis here. As more of a growth play I wanted to take a look at its largest competitor YUM! Brands,...
- Should You Be Loving Mcdonald's Corporation?
Another year completed and another annual report to go through. Back in late January, McDonald's Corporation (MCD) announced 4Q 2013 and full year earnings so what better time than the present to input the new data and update my valuation analysis....
Money and Finance
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 the dividend to shareholders. Family Dollar Stores is a major player in the discount retail space operating over 8,000 stores throughout the United States. Shares of Family Dollar Stores closed trading on Friday, April 11th at $56.10 giving a current yield of 2.21%.
Discounted Earnings:
Analysts followed by Yahoo!Finance expect Family Dollar Stores to grow earnings 3.15% per year over the next 5 years and I've assumed they can grow at 2.75% 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 $44.62. This means the shares are trading at a 25.7% premium to the discounted earnings analysis.
Click here to read the rest of the analysis over on Seeking Alpha.
I've updated my Stock Analysis page to include this analysis.
If you'd like to receive posts via email and sign up for my newsletter you can do so here or on the Subscribe page at the top of this blog. As a post/newsletter subscriber, you'll be the first to know about ideas that are running around in my head for the blog.
- 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,...
- Does The Procter & Gamble Company Belong In Your Portfolio?
It's time to update my valuations on some of the dividend growth favorite consumer staples companies. Consumer staples companies are great for dividend growth investors because people need to wash their clothes and clean their house whether...
- How Yummy Is Yum Brands' Valuation?
Last week I updated my valuation of McDonald's Corporation (MCD) and the price appears to offer a decent value. You can read the full analysis here. As more of a growth play I wanted to take a look at its largest competitor YUM! Brands,...
- Should You Be Loving Mcdonald's Corporation?
Another year completed and another annual report to go through. Back in late January, McDonald's Corporation (MCD) announced 4Q 2013 and full year earnings so what better time than the present to input the new data and update my valuation analysis....