Saturday, August 23, 2014

Stock analysis - August

In order to determine new purchase possibilities I use my watchlist.
As I do not want to pay full price, I added a column to find bargains.
This indicator does not make me buy the stock right away, it's just to determine which stocks require more research.

The best deals for this month are McDonalds, Universal Corp. and Deere & co.

McDonalds (MCD)
This major fastfood company does not require any introduction. As a matter of fact, I don't think there is anyone reading this blog who has never heard of McDonalds.

Stock wise it is also a very popular stock amongst DGI bloggers.
With their recent downfall, it is currently trading at very affordable levels.

MCD has a yield of 3.43%, a 3 year DGR of 11.35% and a P/E of 17.13

Universal Corp. (UVV)
Universal Corp is a tabacco merchant. They sell the most important ingredient for cigarettes to large manufactures like Philip Morris. They have been successfully doing so for more than a century, despite all the negativity around the smoking addiction worldwide.

UVV has a yield of 3.93%, a 3 year DGR of 2.08% and a P/E of 9.89.

Deere & company (DE)
John Deere is the largest company for agriculture machinery worldwide. A few relatives of me are farmers in Canada and their backyard is full of John Deere stuff. The recent drop in its stock price is probably due to their announcement to lay off more than 600 empoloyees in four of their plants.

DE has a yield of 2.82%, a 3 year DGR of 19.71% and a P/E of 9.3.

Both MCD and DE are suffering from various problems.
MCD took a large hit if you take a look at their recent (3m) graph. Although I would be in it for the long run, one could say that it would be pointless to take a stock which is still dropping. But how would we know?

UVV seems to be a healthy company, despite their very unhealthy product.
However, I am not happy with their lack of growth, especially compared to other companies in the same sector.

DE would be the best choice if I'd go by diversification of my portfolio.

At the end of the day I haven't decided yet.
Any thoughts?

Thanks for reading.


  1. The golden arches have taken quite a beating and is looking pretty cheap. McDonalds just announced the new president for their US division. I hope he can help boost sales numbers.

    1. Hey CD,

      Thanks for stepping by. It's much appreciated.

      Best wishes,

  2. I don't invest in tobacco companies but MCD and DE both look like something I might initiate position in the near future.

    1. Hi Tawcan,

      Thanks for your comment. I appreciate it.
      Good luck with your new blog!

      I wish you all the best with this journey.
      The community is great, so you should be ok :)

      Best wishes,

  3. I looked at UVV before a long while ago, and there was something I didn't like about it, but for the life of me, I don't remember what it was! Of your three, I like MCD the most, and will probably add to my position as well in a month or two.

    1. Hi Dividend Developer,

      Thanks for your comment.
      If you remember what it was, I'd love to hear it :)

      Best wishes, DfS