Newell Brands (NWL) - New Purchase
Well I've sold a few of my small cap interest sensitive REITs over the last couple of weeks and put that money to use on this American giant.
"Newell Brands is an American worldwide marketer of consumer and commercial products with a portfolio of brands including Rubbermaid food storage, home organization and reusable container products; Contigo and Bubba water bottles; Coleman outdoor products; Diamond matches; Sharpie, Expo Markers, PaperMate, Dymo, Elmer's, Krazy Glue, Mr. Sketch, Parker Pens, Uniball, Prismacolor, Rotring, Xacto, Waterman, Berol stationery products; Bicycle and Bee Playing Cards; Aprica, Nuk, Tigex, Babysun, Baby Jogger and Graco children's products; First Alert alarm systems; Calphalon cookware and kitchen electrics; Sunbeam, Rival, Crock-Pot, Holmes, FoodSaver, Oster, Osterizer, Mr. Coffee small kitchen appliances; Yankee Candle candles; Jostens custom memorabilia; and Goody hair care accessories."
Here's why I thought it was good idea to pull the trigger:
The stock just got hammered for two reasons.
1. They reduced their guidance a bit.
2. People have been moving out of consumer products to high growth areas.
-Estimated 2018 PE – 10.7
-Estimated 2019 PE – 9.8
-20% revenue international
-80% revenue north america
-2.9% dividend yield (have been paying a dividend since 1972)
-32% payout ratio – so still lots of money to put back into the company
-47% debt to capital (a little high but manageable)
-biggest risk in my mind is cheap competition from China
I plan on adding this company as a core holding so my holding period is currently forever.