DGI For The DIY

[EricL]

(09-27-2014, 12:54 AM)Dividend Watcher Wrote: Eric, it seems we seem to be on similar wavelengths lately and it's getting a little eerie.

Hopefully that means we are both geniuses and not something else

Thanks for the comments, its good to hear others agree with my train of thoughts.

I had run across Tupperware on some screens during the initial construction of my portfolio and thought it looked interesting, then became even more intrigued after Chuck Carnevale wrote an article about it on SA earlier this year. With the stock down about 17% from when he wrote the article and now trading at a PE of under 13 with a near 4% yield I thought it looked like a great entry point.

Over the last decade the company has grown earnings at 16.5% annually and is projected to continue growing at 12.5% going forward. In the investor presentation on their website they state the intention of maintaining a 50% payout ratio, meaning that the dividend should continue growing at a double digit rate as well. Combine that with an efficient stock buyback program that has retired about 18% of shares over the last 5 years and I think this could be a great long term hold.

I think Clorox is a great company too, but with the stretched valuation and slower growth, Tupperware should be able to provide me greater total return over the years ahead.