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Amcor: Shareholder Friendly But Overvalued

Mar. 02, 2023 3:53 AM ETAmcor plc (AMCR)2 Comments
Tangerine Capital profile picture
Tangerine Capital


  • A company with a market-leading position in a major industry that likes to pay a high dividend and buy back shares.
  • But they have below-average capital allocation skills if we look at the 5-year average annual ROC.
  • Their game plan could still lead to a really nice return for their shareholders because it is a proven one.

Amcor Flexibles North America. Australian based packaging company Amcor is the largest packaging manufacturer.



Amcor plc (NYSE:AMCR), one of the Dividend Aristocrats, could be an interesting long-term holding. They are a shareholder-friendly company that is a market leader in a popular industry. But they are at a premium to some of their peers

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Comments (2)

What are your typical screeners for these companies? "...High single-digit EPS growth, along with high dividends and share buyback" Is there a reliable source to review companies with share buy backs. Also what's your target range for "high dividend"? 3.5% - 4.5% or higer without being a yield chaser ie: shippers over 9%
Tangerine Capital profile picture
@ems1960 thecobf.com/...

This is a nice thread on how to screen for buyback cannibals.

And I think with high dividends it is a difficult issue. It depends on the company and the market conditions and for some companies it will be value destructive if they buy back shares in the future instead of earning 5%+ on that cash in a interest account.
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