Tuesday, November 10, 2015

Recent Buy: WMT; Watchlist for November-December



It feels good to get back into the buying game.

On November 10, 2015, I bought 8.5339 shares of WMT at $58.59 for a total of $500.00 in my Loyal3 Account.

Instead of explaining my rationale I am going to plagiarize Div4Son checklist and give you a link to his website.


Criteria Checklist


WMT 10/2015
Area
Criteria
CheckList
Comment
Quality Company
Dividend Growth
>5 years
Yes
42 Years
ROE/Op Margin
Stable
Yes
Stable
Long term Avg Growth
Stable
Yes
Stable - Note
FCF over Dividends
Yes
Yes
FCF covers Dividends
M* Moat
Wide Moat
Yes
M* Wide
M* & S&P
Credit Rating
> BBB+
Yes
AA
Cash to Debt & Interest Coverage, Debt to Equity
Cash Debt >1 or Interest Coverage > 5
Yes
Cash to Debt 0.12
Interest Coverage 11.03
Debt to Equity 60.51
M* & S&P Stars
> 3 Stars for both
Yes
M* 5 Stars
S&P CapIQ 3 Stars
Payout Ratio
<60%
Yes
41%
Dividend Growth
& Yield
Dividend Yield
>3%
Yes
3.34%
Dividend Growth
>5%
Yes - but future short term growth in 2-3% range
12.90%
Chowder
>12%
Yes
16.24%
Valuation
Yield/Avg Yield
>1.1
Yes
1.32
Dividend Yield Theory Mid Point
Below Mid Point
Yes
Mid Point 73.37
Low Point 58
P/E
Below Mid Point
Yes
Median 14.69 Current 12.26
DRRM
~10%
Yes
Assuming 5.5% growth; projected return=11.08%
M* Estimate
<M* est
Yes
M* 75
S&P Estimate
< S&P cap IQ est
Yes
S&P Cap IQ 62

http://div4son.blogspot.com/2015/10/weekly-purchase-7-wmt.html

http://div4son.blogspot.com/2015/05/wal-mart-wmt-dividend-stock-analysis.html?m=1


November-December Watchlist

Likelihood of rate hike is 60% in December. The markets are freaking out so maybe we'll have another pull back. Below is my watch list.
  1.  KO--Under $40 preferably $39 
  2. CMI-under $100 
  3. PG--Under $70 
  4. JNJ--Under $91 
  5. PM--Under $80 
  6. O--Under $45 but preferably $39 
  7. HSY--Under $88 (which it is right now) but preferably at $84
  8. WMT--$58 to $59
  9. NSC--Under $75
  10. Trow-Under $68
  11. SO--$42
  12. WEC--$44

I will add more as I continue my research. thanks for visiting!

Forward 12 month income stands at $2,221.73.

4 comments:

  1. Thanks for linking my blog on WMT. I would like to add more once my other positions catch up. It looks like they will stay low for a while so I may have an opportunity.
    D4s

    ReplyDelete
    Replies
    1. Hi D4s, no thank you for doing such a good job on analyzing companies. I would have ignored WMT until I read your post and did a little more research. Keep up the good work.

      Delete
  2. Thanks for the watch list. I have my eye on a few of these picks as well.

    ReplyDelete
    Replies
    1. hey CD,

      thanks for visiting the blog. I'm just hoping the markets reaction will be as what everybody expects

      Delete