Dividend Stock Wednesday: Anheuser-Busch (BUD)

Written by The Dividend Guy on February 6, 2008

Anheuser-Busch

This is an analysis completed by The Dividend Guy. It is not to be used as investment advice or a recommendation to buy, hold, or sell any stocks discussed. Please ensure you complete your own analysis.

9 Dividend Points

In last week’s Weekly Roundup, I wrote about an article published in Business Week that listed stocks that were part of the Dividend Aristocrats that their analysts rated as a 4 or 5 out of 5. On the list was Anheuser-Busch (BUD), which is a stock that typically has done well in recessions. As there has been a lot of talk about recessions in the past few weeks, I thought it would be a good stock to look at.

The Company: Anheuser-Busch (BUD-NYSE)

Anheuser-Busch Companies is the holding company parent of Anheuser-Busch, Incorporated and to a number of subsidiaries that conduct various other business operations. The company’s operations are comprised of the following business segments: domestic beer, international beer, entertainment, packaging, such as aluminum beverage container recycling, malt production, rice milling, real estate development, turf farming, metalized paper label printing and transportation services.

Dividend Aristocrat (25+ yrs dividend growth)
 Yes
Dividend Achiever (10+ yrs dividend growth)
 Yes

THE FUNDAMENTALS

Revenue

BUD - RevenueClick to Enlarge

Revenue Scoring

Criteria Scoring
Consistenly Up with No Down Years 1.0
Up Trend with < 2 Down Years 0.5
Choppy with > 2 Down Years 0.0
My Revenue Score 0.5

Earnings Per Share

BUD - EPSClick to Enlarge

Earnings Per Share Scoring

Criteria Scoring
Consistenly Up with No Down Years 1.0
Up Trend with < 2 Down Years 0.5
Choppy with > 2 Down Years 0.0
My EPS Score 0.5

TOTAL FUNDAMENTALS SCORE: 1.0

THE RATIOS

Return on Equity

BUD - ROEClick to Enlarge

Return on Equity Scoring

Criteria Scoring
Above 15% for Last 5 Years 1.0
At Least One Year Below 15% in Last 5 Years 0.0
My ROE Score 1.0

Other Ratios

Ratio Criteria Value Score (Pass=1 / Fail = 0)
Debt to Equity < 0.50 2.36 0.0
Payout Ratio < 60% 45% 1.0
Credit Rating > BBB+ A 1.0
Total Ratio Score
-
-
2.0

TOTAL RATIOS SCORE: 3.0

DIVIDEND DATA
Annual Dividends

BUD - DPSClick to Enlarge

Dividend Scoring

Criteria Scoring
25+ Years of Dividend Growth 1.0
10+ Years of Dividend Growth 1.0
< 10 Years of Dividend Growth 0.0
My Dividend Growth Score 2.0

TOTAL DIVIDEND GROWTH SCORE: 2.0

STOCK VALUATION

Valuation Metric Criteria Value Score (Pass=1 / Fail = 0)
Dividend Yield Cur Yld > 10 Yr Avg Yld 1.9% 1.0
Div Yld Compared to SPY Div Yld Cur Yld > SPY Yld 2.3% 0.0
P/E Ratio Cur P/E < 10 Yr Avg P/E 20.8 1.0
Relative P/E Relative P/E < 1.0 0.88 1.0
Price to Sales < 1.5 2.11 0.0
Total Ratio Score
-
-
3.0

Canadian Shareowner’s Association Stock Selection Guide Software Buy Price

Buy Zone
 Maybe Zone
 Sell Zone
 Current Price Rating Scoring (Buy=1.0, Other=0.0)
$38.45 to $47.40
$47.40 to $56.36
$56.36 to $65.31
$48.06
Maybe
 0.0

TOTAL STOCK VALUATION SCORE: 4.0

SUMMARY

Points Earned:

9 out of 14

The stock is rated MEDIUM with 9 points earned through my analysis of the stock. I do not currently own BUD, but would not be interested in making a purchase at this time. I will want to see earnings increase. The consistent dividend increases are nice, but it appears that this is already priced into the stock

Rating Points Required
High 11+ points
Medium 8-10 points
Low < 8 points

Reminder: This is an analysis completed by The Dividend Guy. It is not to be used as investment advice or a recommendation to buy, hold, or sell any stocks discussed. Please ensure you complete your own analysis.

The Dividend Guy does not own shares in Anheuser-Busch (BUD)


Recommended: ING DIRECT makes $aving money simple! Open your account online today and start earning 3.00% variable APY. No Fees and No Minimums!

del.icio.us| Digg| Furl| Reddit| Google| StumbleUpon| Technorati| Help|

1 Comment so far

  1. busch entertainment February 28, 2008 12:36 pm

    […] friends, and I’ll reply with a &quotlandmark&quot which will bring you rigpaullevinson.blogspot.comDividend Stock Wednesday: Anheuser-Busch BUDDividend Stock Wednesday: Anheuser-Busch BUD Written by The Dividend Guy on February 6, 2008 Be the […]

POST A COMMENT

If you would like to make a comment, please fill out the form below.

Name - (Required)

Email - (Required but not published)

Website - (Optional)

ENTER YOUR COMMENTS BELOW






Student Loan

www.financialwebring.com