Anheuser-Busch InBev Has 500 Beers For You

Every New York stock exchange trading day I'm posting a daily dividend stock or fund review. I'll share the three chief qualities of just one equity or fund that could be selected for a dividend stock portfolio I've named the Safari to Sweet Success.

This week my Safari portfolio is adding a company from the consumer defensive sector, which includes thirteen industries all related to those conveniently packaged goods we've just gotta have. The industries are: beverages, brewed, soft, or distilled;confectioners; discount stores; education & training; farm products; food distribution; grocery stores; household & personal products; packaged goods; pharmaceutical retailers; tobacco.

Today I'm reviewing a beverage - brewed representative, the World's biggie, Anheuser-Busch InBev SA/NV. Its trading ticker symbol is BUD

Anheuser-Busch InBev SA/NV produces, markets, and distributes beer and other malt beverage brands. Its brands includes Budweiser, Corona, Stella Artois, Beck’s, Leffe, Hoegaarden, Castle Lager and more.

It offers a portfolio of approximately 500 beer brands.

The company was founded in 1366 and is headquartered in Leuven, Belgium.

Three key datasets measureAnheuser-Busch InBev SA/NV (BUD): 

(1) Price

(2) Dividends

(3) Returns

BUD Price

 Anheuser-Busch InBev's price at yesterday's market close was $112.76 per share.A year ago its price was $106.02. Thus, it gained$6.74 per share in the past year.  

Assuming Anheuser-Busch InBev price gains in price at the same pace. its price will grow from $112.76 to $119.50.

BUD Dividends

Anheuser-Busch InBev's most recent semi-annual dividend was $1.853 declared in October and paid December 7, 2017.

The annual dividend for 2018 is estimated at $4.05 paid semi-annually in May, and December.

The yield from that $4.05 annual dividend is 3.66% at yesterday's $112.76 price.

Gains For BUD?

Adding the $6.74 year-over-year price to the $4.05 annual dividend equals $10.79 in projected gross gains to be reduced only by the cost to trade the shares. 

A $1,000.00 invested at yesterday's $112.76 price bought 9 shares. 

At $5 for purchase and another $5 at sale, the $10 broker fee equals about $1.11 per share

Subtracting that $1.11 brokerage cost from the estimated $10.79 gross gain leaves a net gain to next year of $9.68 X 9 shares = $87.12 or an 8.6% net gain on a $1,014.84 investment.

Therefore,Anheuser-Busch InBev SA/NV (whose ticker symbol is BUD), now shows a possible 8.6% gain including a 3.66% dividend. 

Ten analysts cover this stock. Five say "buy". One says "outperform". Three say "hold" and the last one says "underperform". 

Those ten peg next year's BUD price at $124.34, or almost $5 higher than my year-over-year estimate of $119.50

These forward-looking numbers are conjecture based on past year performance. The actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if Anheuser-Busch InBev SA/NV (BUD ) is worth your time and money.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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