If you have been following the tips on this and other blogs you will become a producer instead of a consumer. And you will find joy in the simple life. And eventually, ever so slowly, even with a gigantic tuition you will have some money to put aside. For me that goes into dividend stocks that are high quality that align with my values.
This months stock pick
This month it is Newell Brands maker of tupperware and sharpie markers.
This is a chance to hold a boring household products company at a discount. They own paper mate, sharpie, crock pot –rubber made – many of the items in our house that have worked out fine.
On sale for a limited time- for 30% off
The company missed some quarter estimates and the stock prices has been in a down draft ever since. They dropped 30% in a single day this month. We cook with their pots, use Crockpot, have a Coleman stove and a draw full of sharpies and Elmers glue! Even those Contigo drink containers are theirs. Ten years from this will be a blip for patient dividend investors.
Super (or should I say Supper) Awesome Crockpot. Image source: Newell Company
Invest now for 10% earnings yield
The purchase thesis is pretty simple – it’s a chance to own part of a household products company at an earnings yield of just under 10% (and that is at the depressed forecast that caused the stock sale in the first place). This won’t shoot up but will deliver us 10% every year – and a yield of .23 cents a quarter will, at these prices send home 3% of that and leave plenty for further investment and acquisition.
Margin of Safety
Even if the companies earnings drop in half from here the yield, at this morning prices will still be 5% – way more than one can get at the bank. Plus you will be part owner of company that sells stuff used by salt of the earth do-it-yourself people like you and I.
About Newell Brands
Newell Brands (NWL) is a leading global consumer goods company with a strong portfolio of well-known brands, including Paper Mate®, Sharpie®, Dymo®, EXPO®, Parker®, Elmer’s®, Coleman®, Jostens®, Marmot®, Rawlings®, Oster®, Sunbeam®, FoodSaver®, Mr. Coffee®, Rubbermaid Commercial Products®, Graco®, Baby Jogger®, NUK®, Calphalon®, Rubbermaid®, Contigo®, First Alert®, Waddington and Yankee Candle®. For hundreds of millions of consumers, Newell Brands makes life better every day, where they live, learn, work and play.
To learn more, Newell Brands are available on the company’s website, www.newellbrands.com.
November 27, 2017 at 9:28 pm
Woah – it’s up 5% today. Cool. Not to worry – it is still an excellent investment at this price. Don’t worry about these small blips up and down – in this range it’s a great company at a great price (in my opinion).
March 12, 2018 at 9:32 pm
Hope it continues to go upward! It’s a good bet on such iconic American brands at a discount.