Tyson - My "Chicken Run"

Why I used my tax refund to invest in Tyson:
  • While the dividend is low (1.6%) (beats what I'm getting at the bank)
  • The payout ratio is also low - 11.84%
  • The forward P/E ratio is 10.64
  • It's not currently in our portfolio (so some diversification)
  • It rules the roost: " The company is the world's second largest processor and marketer of chicken, beef, and pork after JBS S.A. and annually exports the largest percentage of beef out of the United States. Together with its subsidiaries, it operates major food brands, including Jimmy Dean, Hillshire Farm, Sara Lee, Ball Park, Wright Brand, Aidells, and State Fair. It supplies Yum! Brands chains that use chicken, including KFC and Taco Bell, as well as McDonald's, Burger King, Wendy's, Wal-Mart, Kroger, IGA, Beef O'Brady's, small restaurant businesses, and prisons". Source
  • Chicken is growing in popularity: "Today chicken is cheap, and it has become America’s favorite meat. In the land of the hamburger, we eat more of it than beef. And while we enjoy turkey at Thanksgiving, over the course of the year we will consume five times as much chicken."
  • I like it myself: This past week I had a chicken sandwich for lunch once, and grilled chicken breast once for dinner

Comment: The movie "Chicken Run" is a real hoot! Think "The Great Escape" on claymation! As an investing aside: CALM did not turn out well for us.

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