New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Value Ideas and Strategies
Share and discuss value investing ideas and investing strategies.
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
Bill Ackman Wants To Make Big Profits With These 3 Dividend Stocks
Posted by: Dividend (IP Logged)
Date: June 22, 2013 08:33AM

Some of you might know Bill Ackman because of the phone battle against Carl Icahn on CNBC. He is an activist with around USD 10 billion in assets under management. In his management company “Pershing Square Capital” he has only 10 stock holdings.

As an activist, Ackman tries to increase pressure on the management of a company in order to implement own visions of the company’s future. Nearly half of his positions have voting rights over 10 percent.

His main investment focus is on defensive stocks from the consumer and industrial sector. Around 70 percent of his exposure is related to these two sectors.

Below is a small list of Bill Ackman’s latest Portfolio transactions. Last quarter, he bought only one stock and he needed more than a year to complete his latest 20 transactions.

From his 20 latest transactions are 12 unique positions of which 10 pay dividends. Dividend payments are not in focus of Ackman’s investment strategy. Only one company yields above the 3 percent mark.

Here are my favorite stocks:

Mondelez International (MDLZ) has a market capitalization of $51.47 billion. The company employs 110,000 people, generates revenue of $35.015 billion and has a net income of $1.567 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.940 billion. The EBITDA margin is 16.96 percent (the operating margin is 8.65 percent and the net profit margin 4.48 percent).

Financial Analysis: The total debt represents 25.74 percent of the company’s assets and the total debt in relation to the equity amounts to 60.30 percent. Due to the financial situation, a return on equity of 4.57 percent was realized. Twelve trailing months earnings per share reached a value of $0.99. Last fiscal year, the company paid $1.00 in the form of dividends to shareholders. MDLZ is a new holding and had an impact to his portfolio of 1.8 percent.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 29.14, the P/S ratio is 1.52 and the P/B ratio is finally 1.65. The dividend yield amounts to 1.74 percent and the beta ratio has a value of 0.50.

Burger King Worldwide (BKW) has a market capitalization of $6.99 billion. The company employs 10,870 people, generates revenue of $1.966 billion and has a net income of $117.70 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $590.50 million. The EBITDA margin is 30.03% (the operating margin is 19.50% and the net profit margin 5.99%).

Financial Analysis: The total debt represents 54.80% of the company’s assets and the total debt in relation to the equity amounts to 259.51%. Due to the financial situation, a return on equity of 10.58 percent was realized. Twelve trailing months earnings per share reached a value of $0.39. Last fiscal year, the company paid $0.04 in the form of dividends to shareholders. BKW is a new holding and had an impact to his portfolio of 6 percent.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 51.18, the P/S ratio is 3.68 and the P/B ratio is finally 6.15. The dividend yield amounts to 1.16 percent and the beta ratio has a value of not calculable.

The Procter & Gamble (PG) has a market capitalization of $212.22 billion. The company employs 126,000 people, generates revenue of $83.680 billion and has a net income of $9.317 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $19.124 billion. The EBITDA margin is 22.85 percent (the operating margin is 15.88 percent and the net profit margin 11.13 percent).

Financial Analysis: The total debt represents 22.52 percent of the company’s assets and the total debt in relation to the equity amounts to 46.94 percent. Due to the financial situation, a return on equity of 13.86 percent was realized. Twelve trailing months earnings per share reached a value of $3.99. Last fiscal year, the company paid $2.14 in the form of dividends to shareholders. PG is an existing holding and had an impact to his portfolio of 4.7 percent. He added the stake by 27.52 percent in Q3/2012.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.42, the P/S ratio is 2.56 and the P/B ratio is finally 3.44. The dividend yield amounts to 3.08 percent and the beta ratio has a value of 0.44.

Take a closer look at the full list of Bill Ackman's biggest dividend stock buys. The average P/E ratio amounts to 34.51 and forward P/E ratio is 24.07. The dividend yield has a value of 1.37 percent. Price to book ratio is 2.84 and price to sales ratio 2.84. The operating margin amounts to 16.36 percent and the beta ratio is 1.50. Stocks from the list have an average debt to equity ratio of 0.95.

Related stock ticker symbols:
PG, GGP, MATX, MDLZ, FDO, BEAM, BKW, CP, FBHS, C, ALEX, JCP

Selected Articles:
· Carl Icahn’s Latest Dividend Stock Buys And His Biggest Portfolio Holdings
· Bruce Berkowitz Biggest Dividend Stock Buys
· Ken Fishers Biggest Dividend Stock Buys
· Bill Gates’ Best Yielding Dividend Stocks

*If you like to receive more dividend stock ideas and the free Dividend Weekly, you should subscribe to my free e-mail list. Alternative, you can follow me on Facebook or Twitter.



Guru Discussed: Bill Ackman: Current Portfolio, Stock Picks
Carl Icahn: Current Portfolio, Stock Picks
Stocks Discussed: PG, GGP, MATX, MDLZ, FDO, BEAM, BKW, CP, FBHS, C, ALEX, JCP,
Rate this post:

Rating: 3.0/5 (4 votes)





Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide