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sagitarius84 (26.83)

Family Dollar Stores: Dividend Stock Analysis

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July 09, 2010 – Comments (1) | RELATED TICKERS: FDO

Family Dollar Stores, Inc.(FDO) operates a chain of self-service retail discount stores for low to lower-middle income consumers in the United States. The company is a member of the S&P Dividend Aristocrats index, after raising distributions for 34 consecutive years.

Over the past 10 years this dividend stock has delivered an annual average total return of 9 % to its shareholders. After peaking at 44 in late 2003, the stock fell all the way down to 15 in 2007, before recovering all the way to 40.

At the same time company has managed to deliver an impressive 8.40% average annual increase in its EPS over the past nine years. Analysts expect EPS to increase to $2.60 in FY 2010, followed by an increase to $2.95 in FY 2011. Increases in sales will be driven by expanding the current store count by 2%, as well as increasing same store sales as price conscious consumers purchase the company's value-priced assortment of everyday necessities.Continue Reading...

 

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1 Comments – Post Your Own

#1) On July 09, 2010 at 11:21 AM, sagitarius84 (26.83) wrote:

FDO is attractively valued with its low price/earnings multiple of 16.30. The current dividend yield of 1.60% however is low for my taste. I would consider adding a partial position on dips below $31.
What is your opinion on the stock?

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