(Stacking Tyson Boxes for Mother's Day weekend)
On May 15, 2017, I bought 20 shares of Tyson Foods (TSN) at $58.24 per share and 10 shares of General Mills (GIS) at 56.36 per share for a total of $1,728.38.
- Tyson Foods
- Rough Quarter
- Transitioning to a new team focused on protein products.
- Earnings miss from 2 fires at their plants
- Alleged Collusion with Georgia Docks
- Bird Flu at one of their farms
- Snow Storm killing a large part of their beef
- Quantitative Rationale:
- Trading at a Discount
- 12x PE
- 1.55% dividend (which is one of it's highest ever)
- 18% Payout Ratio.
- Qualitative Rationale:
- TSN recently bought out Hillshire Brand who owns
- Jimmy Dean
- Ball Park
- Hillshire Farms
- and much much mother
- Combined with the fact that I am basically stocking TSN brands all day I might as well own them
- Vertical Integration
- I own the farms
- I own the grain producer
- I own the meat company
- and I own the retailer
- Sensitive to gas and grain prices
- Not sure how the new China deal will affect the US meat producers
- Low margins. Beef is 5%, pork is 6%, and chicken is 9%.
- Just bought out Advance Pierre. Not sure how smoothly this transition is.
- Because it's still in the buy range.
Forward Dividend: $4037.86 or an increase of $37. Onward to $4,500!