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Should You Consider George Weston Limited (TSE:WN)?

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on George Weston Limited (TSE:WN) due to its excellent fundamentals in more than one area. WN is a dependable dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on George Weston here.

Good value average dividend payer

WN’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if WN’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of WN’s peers, it is also trading at a value below those of similar sizes in asset terms. This bolsters the proposition that WN’s price is currently discounted.

TSX:WN Intrinsic Value Export December 16th 18

For those seeking income streams from their portfolio, WN is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.2%.

TSX:WN Historical Dividend Yield December 16th 18

Next Steps:

For George Weston, I’ve put together three relevant aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for WN’s future growth? Take a look at our free research report of analyst consensus for WN’s outlook.
  2. Historical Performance: What has WN’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of WN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.