BK
Brought a small position in BK today at $41.89. here is what I like.
Dividend: BK pays a nice DIVY of about 4% from where I brought, so I like getting paid while you wait. Furthermore I consider them a solid dividend grower. In 2019 it was .28 A quarter, in 2020 we got up to .31 a quarter, in 2021 we got up to .34 a quarter, than .37 a quarter in 2022, and now up to .42 in 2023. So they are a consistent grower of the dividend which is a huge plus.
Share Buy Back: There growing dividend is not only part of the return, but they are aggressive at buying back shares which is another plus. Between Divy and Share buy buck they plan to return 100% of earnings to investors. Thanks to there strong CETI ratios they can do this. So at these prices I expect them to return about 6-8% of the shares over the next 4 quarters. So they are both a serial Dividend raiser and a serial share buyback company.
Earnings Company earned $1.38 adjusted in q2 up from $1.15 y/y. In q1 they had ajusted EPS of $1.13 verus $0.94. So they are showing good EPS growth this year, and I Expect them to earn adjusted eps of about $5 this year, and probably about $5.50 next year. A 12 PE can get us to the mid 60's in the next 6-12 months.
Conclusion: I think BK is cheap and I will of course add more on weakness. All is just my opinion, and I could always be wrong though.
AI
