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Anheuser Busch InBev (NYSE: BUD) was the fourteenth stock mentioned in this post: , which makes it next up for review.

Anheuser Busch InBev is a well known alcoholic beverage manufacturer. I owned some of its bonds, but sold them during the stock market's meltdown because those bonds held up well at a time when I was looking to raise cash. Still, the company made the list, so it's worth looking at again.

Dividends: A Belgian-based company, BUD tends to pay dividends twice a year, and those dividends vary based on the current profitability of the company. Even accounting for currency fluctuations, those dividends haven't been increasing recently and are actually down from their 2017 levels. That said, the dividend seems to be in the neighborhood of a 55% payout ratio, making it reasonably well covered. The lack of recent dividend growth means I wouldn't be a buyer at these prices, but if I were a shareholder, I'd probably be okay holding on based on the dividend.

Balance Sheet: BUD has an investment grade bond rating, a debt-to-equity ratio of around 1.2, and a current ratio of around 0.8. While it does have bonds maturing every year for the next several, its bonds do not look like they are pricing at fire-sale in the market, indicating that the market expects it will likely get through this mess. Between its cash on hand and a reasonable estimate for cash flows, I would agree with that assessment and would be willing to consider owning its shares (or its near term bonds again) based on its balance sheet.

Valuation: Assuming the coronavirus issues resolve themselves in the not too distant future, I estimate Anheuser Busch InBev to be worth somewhere between $48 and $53 per share, slightly ahead of the company's recent price of $42.99. Based on that valuation estimate, I'd be willing to consider buying the company's shares.

Next Steps: Having used my available cash on Monday ( ), I don't exactly have ready capital to invest at the moment. So my next step is to keep an eye on it. If it still looks reasonably priced the next time I have cash available to invest, I'll consider purchasing.

Discovery/HR Home Fool
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