So I decided to initiate 2 more buys for July. I end up buying (DE) Deere & Company & (MCD) McDonald. I bought these in a recent dip.
When analyzing this stock the P/E is at 9.51, compare to (CAT) 17.85, compare to industry 17.53. As you can see De is cheaper than Cat and the industry that it serves. De has a forward P/E of 11.31, with a 5 year PEG Ratio of 1.29. Their forward annual dividend rate is 2.40, forward annual dividend yield is 2.60%, and payout ratio 22%.
(DE) have been increasing their dividend over 10 year + and seem like a good long term dividend stock. Looking at their presentation their presence in the global market is expanding. In April 2014 they have introduced 60 new products in South America and invested $40 million in Brazil to expand sugarcane harvester and sprayer production capacity by 30%. They will be opening a parts distribution center in India, and is expected to be open in the late 2014. This global outlook and the direction they’re going convinced me to buy some shares, so I did buy some this month. I initiated a buy at $87.44 for 57 shares.
MCD P/E is 17.33, compare to its competitors (BKW) 36.74, (YUM) 29.45. MCD is cheaper than its competitor. MCD forward PE is 15.55, 5 year PEG ratio of 2.62. Their forward annual dividend rate is 3.24, forward annual dividend yield is 3.20%, and payout ratio is 57%.
(MCD) has raised its dividend every year from 1976 and is part of the dividend aristocrat. Companies that are in the dividend aristocrat have increased their dividend payout for 25 consecutive years. MCD is a strong company and is still expanding globally. They have consistently increased their dividends and I consider this as a long term investment for my portfolio. That is why I initiated a buy and purchase 51 shares at $95.46.
I am long MCD & DE.
What stock have you purchase lately?