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Everyone Is Selling Ahold Delhaize… I’m BUYING! 🛒🔥

Currently owning 371 shares, that pay around $568,50 a year in growing dividends.

17.08

Ahold Delhaize

Bought x31.59 at €31.65

€999.68

4 Comments

SpongeBob@SquarePants

It is a strong stock, I think will keep going up. But didn’t read the analyses. So pure on feeling

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Tanktycho@Tanktycho

@SquarePants I’m actually very convinced about Ahold Delhaize. 😄 The combination of strong cash flow, a sustainable 40–50% dividend payout, disciplined cash management and €1B annual share buybacks is hard to ignore. That buyback alone is roughly 3–4% of the market cap, while the underlying grocery business remains incredibly defensive. I am very happy and comfortable holding his!

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SpongeBob@SquarePants

@Tanktycho yes indeed. I watched it some months ago when to stock was not that high, It looked a very promising dividend stock.

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sdp_oxigen@sdp_oxigen

What is your expected annual return from this investment, and how did you calculate it?
€568.50 in annual dividends sounds attractive, but a dividend by itself doesn't tell you whether the stock is cheap or expensive. You are buying a business, not a dividend cheque.
Before buying 371 shares, I would want to estimate where sales, net margin, earnings, share count and EPS can realistically be in 5–10 years, then apply a reasonable future P/E and work backwards to the expected share price and total return. Ahold Delhaize may well be a very good business, with strong cash generation, a sustainable payout and meaningful buybacks. But “good company + dividend + buybacks” is not an investment thesis unless you know what you're paying today and what return that price can realistically deliver.
Otherwise, you're not really investing based on valuation, you're betting that the stock will continue to go up

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