Today Australian’s most valuable brand paid its dividend of
72c a share.
I have been a long time Woolworths shareholder as purchased
over a 120 of these many years ago when they traded at a $11.93 a share.
Today Woolworths closed at $26.73 so have made a very nice
profit over these years which doesn’t include the dividends. Woolworths is currently
yielding 5.26% so is a very good income investment as since 2001 they were
paying a total of $0.27 a share in dividends and in 2015 paid a total of $1.39
a share.
Recently Woolworths share price has seen a major drop as were
trading at $36.00 a share during the last 12 months and recently touched a low
of $26.43 a share. Unlike many individuals which are negative on Woolworths due
to the struggling Masters hardware stores, the renewed competition from Coles
and the ongoing growth of Aldi and other foreign companies like Costco I believe
in the long run Woolowrths still has many good years ahead of it and they are
still the largest grocery store in Australia for a reason.
I expect Woolworths could have a few tough years as it
navigates the changing landscape, its growing pains and its investment in the hardware
industry. Although Woolworths shares might drop further I believe much of the negativity
has already been priced in, due to this I recently invested a further $10,000
into WOW and plan to continue watching the share price for further buying opportunities.
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