Monday, January 20, 2014

Delhaize Group

This is a post about Delhaize Group.

From Google Finance : Etablissements Delhaize Freres et Cie le Lion SA is a Belgium-based food retailer. The Company is principally engaged in the operation of supermarkets in Belgium, the United States (Southeast and Mid-Atlantic as well as Northeast and Sweetbay in Florida), Greece, Serbia, Bosnia and Herzegovina, Albania, Montenegro, Bulgaria, Romania and Indonesia. Through its outlets, the Company retails both branded as private label nutritional and household products, among others. The Company operates different supermarket brands and formulas: Food Lion, Bottom Dollar Food, Harveys, Sweetbay, Bloom and Hannaford supermarkets in the United States; Delhaize, AD Delhaize, Delhaize City, Proxy, Red Market, Shop 'n Go and Tom & Co in Belgium and Luxembourg; Maxi, Tempo and Mini Maxi in Montenegro; Maxi and Tempo in Serbia, among others.

Here is a look at the share price over the last ten years

Looking at the dividend, the dividend in 2004 was 91.81 cents, while in 2013, it was 1.339 Euro.

This is a dividend growth rate of 4.28% over the last 9 years.

At its current price, the yield is 2.9%, it is priced to deliver a 6.45% return over the long term, if you were to buy it at current levels.

To achieve 8% return, you will have to wait for the share price to drop to 35.96.

Through 2012, this was the range of the share price, so, if you can imagine that we are likely to return to similar conditions of chaos in the Eurozone, it may be worth it to wait, else, it is better to buy at current price and hold for the 6.45% return.

I am long the stock and will exit when it hits 67.5 USD for its ADR.

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