Currently I am sitting in Orlando, FL, watching Hurricane Irma seemingly bare down on my newly purchased home just south of Tampa. Obviously this is weighing heavy on my mind and I need to do something to keep my mind away from the subject. Since I need a distraction why not write a new post?!
I recently posted about the new breakdown of my dividend fund (which you can find here) and promised that I would write another article detailing exactly how I analyze companies that I believe are currently sitting at an advantageous price. While there are many, many variables to look at when investing (especially those that earn their paychecks primarily off speculation), I tend to lean towards a very select group that can keep emotions as far away as possible. If you remember in my previous article about BGFV (found here) I introduced you to what I called my "Big Ten".
Obviously the ten that I introduced in this article does not encompass everything that I actually take into account before taking a position in a new company, or even adding to a current position. This has led me to develop my "Dirty Thirty" evaluation tool (a cheesy name I know!) to encompass truly all of the numbers that I really dig into when doing my research. Yes, there are some outside factors that I look at, such as the state of the industry or upcoming roadblocks, but for the most part this is exactly how I do my research.
Let me show you an example of a company that has been getting a lot of publicity from other dividend investors: Hormel (HRL). Hormel is a company that has been growing dividends for a long while now, 50 years to be exact, and is always a popular add during dips. With all the speculation though what do my numbers say? Well here you go:
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Disclosure: I am/we are long BGFV.