My 4 Favorites from the Highest Dividend Paying Grocery Stores

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Mar 08, 2013
A very interesting investment field is to buy chains. Every company has a chain but I don’t talk about the relationship structures of a company when they buy commodities, manufacture products and sell them in the end to customers. I talk about store systems like McDonalds or Wal-Mart. For sure, these are two very successful chains with strong brands and lots of value. Normally a smaller chain has no big values.

To buy a store system is a way to make fast money because a profitable concept can be copied all over the world in a very short time. All you need is the right location to expand your selling space. Think about Starbucks and how they work. The critical point is if your business concept will be accepted by different cultures and if your customers are loyal to your products when competition rises. All will be measured in the ratio “same store sales.” That’s a figure which counts the percentage sales increase of older stores space (because a new opened store has higher sales in the first six month).

Today I like to look at the grocery stores industry. The average dividend yield of grocery stores is 1.46% and the P/E ratio is around 35. Linked is a small list of the highest dividend paying grocery store concepts which you can buy at the market.

13 grocery stores pay dividends of which one is a High-Yield. Six of the results are recommended to buy.

Here are my favorite stocks:

Safeway (SWY) has a market capitalization of $5.73 billion. The company employs 178,000 people, generates revenue of $43.630 billion and has a net income of $518.20 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.283 billion. The EBITDA margin is 5.23 percent (the operating margin is 2.60 percent and the net profit margin 1.19 percent).

Financial Analysis: The total debt represents 35.89 percent of the company’s assets and the total debt in relation to the equity amounts to 146.89 percent. Due to the financial situation, a return on equity of 11.91 percent was realized. Twelve trailing months earnings per share reached a value of $1.89. Last fiscal year, the company paid $0.56 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.67, the P/S ratio is 0.13 and the P/B ratio is finally 1.93. The dividend yield amounts to 2.93 percent and the beta ratio has a value of 0.76.

Kroger (KR) has a market capitalization of $15.68 billion. The company employs 339,000 people, generates revenue of $90.374 billion and has a net income of $596.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.916 billion. The EBITDA margin is 3.23 percent (the operating margin is 1.41 percent and the net profit margin 0.66 percent).

Financial Analysis: The total debt represents 34.78 percent of the company’s assets and the total debt in relation to the equity amounts to 205.10 percent. Due to the financial situation, a return on equity of 12.89 percent was realized. Twelve trailing months earnings per share reached a value of $1.36. Last fiscal year, the company paid $0.44 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.32, the P/S ratio is 0.17 and the P/B ratio is finally 4.26. The dividend yield amounts to 1.98 percent and the beta ratio has a value of 0.37.

Whole Foods Market (WFM) has a market capitalization of $15.95 billion. The company employs 53,100 people, generates revenue of $11.698 billion and has a net income of $465.57 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.055 billion. The EBITDA margin is 9.02 percent (the operating margin is 6.36 percent and the net profit margin 3.98 percent).

Financial Analysis: The total debt represents 0.46 percent of the company’s assets and the total debt in relation to the equity amounts to 0.63 percent. Due to the financial situation, a return on equity of 13.71 percent was realized. Twelve trailing months earnings per share reached a value of $2.65. Last fiscal year, the company paid $0.56 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 32.46, the P/S ratio is 1.36 and the P/B ratio is finally 4.20. The dividend yield amounts to 0.93 percent and the beta ratio has a value of 1.00.

Companhia Brasileira de Distribuciao (CBD) has a market capitalization of $13.45 billion. The company employs 149,000 people, generates revenue of $23.766 billion and has a net income of $367.08 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.432 billion. The EBITDA margin is 6.03 percent (the operating margin is 4.51 percent and the net profit margin 1.54 percent).

Financial Analysis: The total debt represents 33.04 percent of the company’s assets and the total debt in relation to the equity amounts to 146.33 percent. Due to the financial situation, a return on equity of 3.55 percent was realized. Twelve trailing months earnings per share reached a value of $1.78. Last fiscal year, the company paid $0.35 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 29.09, the P/S ratio is 0.35 and the P/B ratio is finally 3.46. The dividend yield amounts to 0.69 percent and the beta ratio has a value of 1.12.

Take a closer look at the full list of the highest dividend paying grocery stores. The average P/E ratio amounts to 19.48 and forward P/E ratio is 14.32. The dividend yield has a value of 2.64 percent. Price to book ratio is 2.65 and price to sales ratio 0.48. The operating margin amounts to 3.98 percent and the beta ratio is 0.75. Stocks from the list have an average debt to equity ratio of 1.60.

Related stock ticker symbols:

RNDY, DEG, IMKTA, VLGEA, WMK, SWY, KR, CORE, HTSI, CASY, ARDNA, WFM, CBD, ETE,

Selected Articles:

· Dividend Stocks From The Services Sector With Highest Expected Growth

· Best Services Stock Picks For 2013 | A Selection Of Growth Stocks

· 13 Best Dividend Paying Services Stocks

· The Best Yielding Large Cap Services Stocks

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High dividend-paying grocery store stocks originally published at long-term-investments.blogspot.com.