Anheuser-Busch InBev NV (NYSE:BUD)

CAPS Rating: 4 out of 5

Recs

3
Player Avatar scruffy4life (78.37) Submitted: 11/20/2010 10:48:58 AM : Outperform Start Price: $53.37 BUD Score: +37.94

Scruffy believes in this company.

Member Avatar truthisntstupid (86.74) Submitted: 5/12/2011 7:09:30 PM
Recs: 0

So far they're only paying a yearly dividend? But they appear to be growing it fast. Last year's dividend was $0.49/share. This Apr they paid $1.18/share. Wow.
The bad news is you have to wait for next year (Next April) for any further reductions in your start price.
Let's guess next year's dividend is the same as this year's (hopefully not)at $1.18, or $2, and see what the range would be.
Volatility in the current price isn't likely to make more than a nickel or so difference.
If BUD pays $1.18 next year, then when it goes ex dividend next April your CAPS starting price will fall to around $55.51.
If BUD were to pay $2 next year, then in April 2012 your starting price would drop to around $54.78.
Too bad it only pays once a year. If it paid quarterly the dividend alone would change that rad number to green in a jiffy.

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