This week I made a stock analysis for Hormel Foods. I liked the company and indicated in the analysis that I was looking into buying this week. The company lost a lot of value and because of that it came back into reasonable valuations. I trust this purchase can unlock nice long term shareholder value for the portfolio.
I purchased 55 shares of HRL for a price of $ 30,82 a share. Together with my fees of $ 13,81 my cost basis is € 31,07.
This buy adds $ 37,40 of forward dividends per year to my portfolio. After taxes that netts me $ 31,79 per year in dividends which is € 26,41 in Euro’s with the current conversion rate. My forward income excluding taxes for my portfolio is now € 405,59 per year and after taxes.
What do you think of this purchase? Do you have HRL in your portfolio? Do you see the stock as more reasonable in valuation or do you think the long term picture changed? Don’t hesitate to comment below!