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Strategies & Market Trends : Fundamental Value Investing

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To: E_K_S who wrote (4412)	5/21/2020 7:25:07 PM
From: bruwin	1 Recommendation Recommended By Sergio H Read Replies (1) of 4719

I get the impression that a Dividend Yield that is sustainable, going forward, is something that attracts you. You mentioned ERM has a Div. of 3.5% and sells for about $56/share. Well, .... here's one of the "kings" of "Durable Competitive Advantage" companies, KO ..... ................And if we compare the numbers to EMR it seems to me that KO is ahead in nearly all departments ...... The one area that ERM does slightly better is that it pays "Uncle Sam" a bit more tax than KO. However, when I put KO's tax rate at 19.1% it increased its tax by $716m and thereby reduced its Net Income to 25.2%, which is still over double that of ERM at 12%. But there are two numbers of KO's which may be relevant to what you are looking for. KO at ~$45/share is cheaper than EMR at ~$56/share, and KO's Dividend Yield is 3.74% compared to EMR's 3.5%. In terms of a company's Long Term sustainability I reckon one would have to look very hard to beat Coca Cola, which should ensure that healthy Dividend Income well into the future ......

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