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| House of Frankenstein Wax Museum, Lake George, NY. |
The Walt Disney Company (DIS)
- Its all about brand power when you talk about Disney. For children and teenagers it's all about Star Wars and the Marvel characters. Even I still enjoy the Star Wars and Marvel movies. The Disney movies and animated TV series drive the merchandising and the theme parks. You couldn't ask for a wider moat. I think this might be one of the best growth stories among all my large cap stocks. Long term winner even at current valuation.
- Did I mention Star Wars? Well Episode 7 has a release date of December 15, 2015. Probably a good idea to pick up some shares before then.
- Dividend Yield is only a meager 1% or .86 cents per share, however this is more of a growth pick. The other thing is that (DIS) only pays dividend once a year in December.
- The company owns ESPN and its a major revenue source and did I mention the highly successful acquisitions including Marvel and Pixar?
- P/E is slightly high at 21.98 but I still wouldn't bet against the mouse.
Anheuser-Busch InBev (BUD)
- (BUD) is by far the largest selling domestic beer. Tough times doesn't mean people will cut back on drinking habit or custom.
- P/E of 13.33 and dividend yield of 1.8%. (BUD) only pays out dividend once a year in April.
- It has relatively safe exposure to emerging markets, especially in Latin America. This will only increase when it owns the rest of Modelo.
- Great company. Buying up huge Mexican brands. Not even a recession can hold back beer consumption. In good times people will drink. In bad times people will drink.
- So what about the ever growing craft beer market? (BUD) is nobody's fool. Yes, the only segment of the beer industry that's growing is craft beer, but AB-InBev is a company that will find a way to make profit. The recent acquisition of Goose Island is enough proof that AB-InBev understands the need to focus on quality. I would not be surprised to see AB-InBev buy up some more small breweries in the future. This way they will be able to tap into the growing Craft popularity.
What do you think of these two companies? Do you currently own any shares? Would you consider a future buy?
I like both stocks but they are trading at their highest right now... so as a girl who likes Sales, I will just watch for now. :)
ReplyDeleteI agree and would like to see a dip in these. I might just add a smaller position for now, because a dip might not happen. Hard to bet against the potential growth over the next few years.
DeleteDIS, albeit expensive now, deserves a second look. It is the king of the entertainment industry...more so after acquiring LucasFilm. Their Media and Parks/Resorts make up 3/4 of their revenue.
ReplyDeleteI really think the new Star Wars trilogy will be the next big thing for Disney. I know I am kind of speculating here but I don't mind buying at this price before all the hype. Chances are the price will be more expensive in the upcoming months.
DeleteBoth are good companies. I like DIS although they only pay a dividend once a year. Another bonus is both companies are available through Loyal3.
ReplyDeleteRegards,
Dear Dividend
Hey DD,
DeleteAnother bonus is you get 1.5% cash back with the capital one quick silver card. So everytime I make a purchase I am already making a profit.
These are some good reviews on the qualitative aspects of the businesses. I don't like the high P/E disney has, I guess if I were going to stretch out a pay a premium I would prefer to pay it on something like VISA but I think disney has great long-term prospects as well.
ReplyDeleteKipp,
DeleteI also like Visa and I might add a position soon. I still need to add a few different sectors including financial to my portfolio.
Very interesting companies Mongrel. As you stated, both have very strong brands and are leaders in their respective industries (Who is even close to Disney). Both companies have also experienced great dividend growth over the last five years, which is a nice plus. However, based on the current valuation and current yields I might sit put these companies on the backburner. I have some holes in my portfolio I need to fill with my next purchase!
ReplyDeleteGreat job digging up two leser known dividend companies. While they are not high-yielding companies, they have proven themselves as a strong dividend growth stocks. Keep up the great work!
Bert, One of the Dividend Diplomats
Bert,
DeleteYou make a very good point. I also have to diversify my portfolio a little. I don't currently have any industrial, financial, and healthcare stocks. This is something I have to look into a little further because I want to build a solid foundation. A solid foundation will hold better in case a hurricane correction comes through some day.
I'm not long either stock.
ReplyDeletePersonally I feel good about the "moat" that Walt Disney has and the regular folks that continually come back as well as their acquisition of Lucas Films.
As far as BUD I think the beer itself will be around for at least a generation as my generation is totally into craft beers. However, all their other holdings balance that out, I think. Probably a long-term player, I'm just not into it from a qualitative side.
It`s true that the popularity of craft beers has gone up. I also drink craft beers most of the time, but when you get a bunch of college kids partying, they tend to buy the 30 packs of bud beer. Craft beer doesn't come in 30 packs and the cost of craft is much higher. Bud has ownership of Corona maker Modelo which is going to be huge when they tap into the global markets. Another thing I noticed was when people go to clubs, they order the more affordable beer. I'm going to add a small position and see where that goes. Thanks for stopping by.
DeleteI did not realize that BUD owned Goose Island Beer Company. This month, I had their 312 Urban Wheat Ale while flying on United Airlines. Apparently, United will be offering it on all of their flights. What a great way to get a captive audience to try a craft beer! Needless to say it was tastier than my usual Miller Lite.
ReplyDeleteRoger,
ReplyDeleteI also like the Goose Island line of beer. I am hoping that some of the local bars start to carry it on tap. BUD continues to acquire other craft beers in order to keep up with the craft beer craze. If the stock price dips a little I will add a position because I see some growth potential here. Thanks for stopping by!
I'm looking very closely at DIS. With the parks/resorts, ESPN, Star Wars and of course their huge stash of children's movies there's a lot to like. Just this year they had the Maleficent movie that's a retelling of Sleeping Beauty and in 2015 they're having a new Cinderella movie coming out. Hope to see this one dip some but I don't expect it to. Just really wish they would switch to a semi-annual dividend at least.
ReplyDeleteHey PIP,
DeleteIn was unaware of the new Cinderella movie. This is great news and I am hoping to buy more shares before the price gets too unattractive. I agree that I wish the dividend was semi or quarterly. I am excited with the new Star Wars movies coming out and I plan on watching them in the theaters. I don't see much dip in the current price but only time will tell. Thanks PIP for stopping by!