One of the best ways to judge a company is in relation to its peers. Doing a fundamental analysis is only one part of the due diligence necessary before any securities purchase. It is also important to compare the company’s operating and valuation metrics to those of it’s top competitors. Since different industries have different standards that are considered acceptable, what may seem like a great business at first look may turn out to be the worst performer in it’s industry.
For this reason, I am going to try a something new with my dividend stock analysis. From this point on, I’m going to choose an industry at the beginning of every month, and spend the month analyzing that industries top dividend paying companies. At the end of the month, I will post a table that compares each of the companies I have analyzed. I think this will be a great way to examine companies in relation to their top competitors.
For the month of January, in honor of the better than expected seasons retailers had, I am going to analyze the Discount, Variety Stores industry. This month will include analysis of
First up is Walmart, which will be out this week, so be sure to check back in the next few days.