Wednesday, November 12, 2014

Bemis Company, Inc. Dividend Stock Analysis

As part of building a diversified dividend growth portfolio it's important to own not only a number of companies but also companies that operate in a variety of industries. Previously I've looked at some restaurants, beverages, and consumer staples companies, but today I wanted to examine a consumer goods company that we've probably all put our hands on their products but none of us realize. This dividend champion has 31 consecutive years of dividend growth. Bemis Company, Inc. (NYSE:BMS) closed trading on Thursday, November 6th at $38.83 giving a current yield of 2.78%.

Discounted Earnings:

Analysts followed by Yahoo Finance expect Bemis Company to grow earnings 5.70% per year over the next 5 years and I've assumed they can grow at 5.13% (90% of 5.70%) for the next three years and at 5.00% in perpetuity. Running these numbers through a discounted earnings analysis with a 10% discount rate and summing over 30 years yields a fair value price of $39.58. This means the shares are trading at a 1.9% discount to the discounted earnings analysis.

Click here to read the full analysis of Bemis Company, Inc. at Seeking Alpha.


  1. You may want to take a look at SON.

  2. I had looked at BMS in the past a couple times. Not a bad company but the valuations were never there to get me excited. They seem pretty set at having around a 50% payout ratio and as long as EPS growth is 5% as you say (and I agree) its only going to give a 5% dividend raise.
    There are other companies out there with better prospects.