From their website:
There are 1,678 Safeway stores across the US and Canada. These include 312 Vons stores in Southern California and Nevada, 112 Randalls and Tom Thumb stores in Texas, 4 Genuardi's stores in the Philadelphia area, as well as 17 Carrs stores in Alaska.
Safeway has reduced their shares outstanding from 446M in 2007 to 240M in 2012. This is one reason they have such a low P/E of 8.4. I'm ok with this and will hold on to the company as long as they continue increasing their dividends. Their dividend has increased from .05/share in 2005 to .175 now. Safeway is a dividend challenger as they have increased their dividend for 8 straight years. They also have a payout ratio of just 31%. They have a 5-year CAGR of 19.7%.
With a current yield of almost 4% , this purchase of 100 shares will increase my yearly dividends by $70 and this will also push my forward 12-month dividends to more than $3000.
Wow. I like the numbers of this company. I wonder if they are interested in Tesco's Fresh & Easy. I love cheap consumer staple stocks and I'll definitely have a look. I remember going to Safeway in Comox B.C. 20 plus years ago. We'd have the guy make our pizza while filling up our 2 liter bottle with Banana pop (soda). I wonder what it's like nowadays.
ReplyDeleteThanks ADY for stopping by. I've actually never been in a Safeway but am very familiar with Randall's being in Texas and I am familiar with some of their brands.
DeleteI made two more purchases today that I will be mentioning soon.
Take care.
I know nothing about Safeway stock, I'll be taking a look at it. Safeway grocery stores are a little more upscale than Kroger in my experience. When I lived in Colorado I used to shop there for the awesome bakery selection. I still remember the bagels were outstanding and pretty cheap. We'd grab a bunch before go skiing.
ReplyDeleteHi CI. Thanks for stopping by. We don't have Safeway stores where I'm at but there are Randall's and they always seem to be busy. I don't plan on adding any more shares for a while though. Take care.
ReplyDelete