|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?