Recent buy – Hormel Foods Corporation

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.

 

 

Purchase

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!

4 thoughts on “Recent buy – Hormel Foods Corporation”

  1. Good buy — HRL has topped my 10 Dividend Growth Stocks list on Seeking Alpha for 5 months running. My fair value estimate is $32, so HRL is just about at fair value. Your entry below $31 is great!

    1. Nice! I love OHI. Not without risk, but can’t believe you can go wrong with it in the long term.

      I don’t know much about IBM. I have the philosophy to stay away from tech stocks. To much can change in a short time to my personal liking.

      I believe in Hormel and think the lower share price is a temporary thing. So if I’m right, then it will be a great addition to the portfolio!

Leave a Reply

Your email address will not be published. Required fields are marked *