Well, not far ago I was writing that I am waiting for market to correct and then I will buy VFC or MDT. After seeing MDT going up lately I decided to buy VFC anyway…

We will see whether it was a right decision, but recently share price dropped again 2-3% and I decided to buy 39 shares at $51.28, which should increase my dividend income in 2017 by around $65.

Key reasons:

  • high drawdown, 30% from the top
  • 3% dividend yield + strong buybacks, acceptable return
  • safe dividend payout of around 50%
  • negative sentiment, there is only upside :)
  • valuation is not so high versus other companies, around 10-11 times EBITDA
  • look on attractive EPS dynamics (due to share buybacks)

More to be found in my analysis of VF Corp :)