Saturday, January 20, 2018

Recent Buy: Anheuser Busch Inbev (BUD)

I recently picked up 9 shares of Anheuser Busch Inbev (BUD) for $110.80 a share. This adds about another $30 to my dividend income for the year.

Now to be clear I don't think this is one of the better dividend stocks, but it is a company I've wanted to invest in for a very, very long time. There was a recent pull back and I just had to pick up a few shares. 

There are a few reasons why I wanted a share of this company. 

1. Beer/Wine/Alcohol is consumed by almost everyone
2. They have an incredible market share. Whens the last time you went to a sporting event? Did you notice that almost everyone was drinking a bud light? Or maybe it was a Stella or a Goose Island?
3. They are buying up as many of the craft breweries as they can. I personally love craft beer (IPAs being my favorite) and they have bought a lot of breweries that I enjoy beer from. If they continue buying up breweries then they will continue to own a huge chunk of the beer market. 

Check out all of the brands here:

Now when I bought the stock it was yielding nearly 3.7%
However, the one downside to owning this stock is that I will get taxed twice on the dividend. This is unfortunate, but again I just really wanted to own a piece of this company since they have an incredible portfolio of brands. 

But, they do sport some pretty good dividend growth with the 10 year growth rate at 14.3% 

I don't consider this stock a dividend champion, but this company is not going away anytime soon and they will continue to pay me for a very long time. 

Let me know what you think! Anyone out there big craft beer drinkers? 

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