Anheuser-Busch Companies, Inc. (NYSE:BUD.DL)

CAPS Rating: No stars

The Company's operations are comprised of the following principal business segments: domestic beer, international beer, packaging, and entertainment.

Recs

1
Player Avatar rd80 (97.59) Submitted: 4/20/2008 7:16:30 PM : Outperform Start Price: $46.64 BUD.DL Score: +30.84

A re-up.

In the words of a Tom T. Hall song, "I like beer."

BUD's trading at a fwd PE of 14.5, with profit and operating margins of 12.5 and 17% respectively. Analysts estimate a 5-yr growth rate of 8.2%. The current dividend yield is 2.7%. I'm pretty sure there's no sub-prime mortgage or complicated collateralized debt risk here.

BUD's not going to shoot the lights out, but people will keep drinking beer regardless of what's going on with the economy, credit markets, or private equity. In the current volatile market, many investors will be looking for something stable with earnings they can count on. BUD fits that description. The dividend yield is also high enough to be competitive with treasuries, so should have some support from income investors.

Member Avatar rd80 (97.59) Submitted: 6/12/2008 9:44:57 PM
Recs: 0

Ended pick due to buy out offer from InBev. I may have left a few points on the table if the offer goes through, but it's cheap insurance against the deal blowing up.

Featured Broker Partners


Advertisement