Berneice buys BUD 109.51: For a strong payout stream you can do much worse but I'd caution that the outlook for the stock is uncertain right now.

If, however, you're after a strong yield, BUD may be for you. In light of the uncertainty in the chart and the fact that the company is weakening fundamentally, I'm going to steer clear of BUD for now. What the stock does in the next couple of weeks is likely to determine the long term trend; either it will bounce off the 200DMA line and continue a new leg higher or the uptrend will break down and shares will sell off. If the uptrend is to continue it will need to do so pretty quickly or risk penetrating the 200DMA to the downside. The 200 DMA has converged on the channel that the stock is trading in so now is do or die time for the stock.


Sherril:
That being said, the chart is offering up a different opinion of BUD.

Winifred:
BUD looks precariously perched right now based upon its yield so if the yield falters, the stock could reset 20% lower or more.

Lawanna:
If, for some reason, BUD has to post a lower dividend one half we could see a huge sell-off in the stock.

Lanell:
It is dependent upon earnings and given the weak outlook for volume and margins from stiffening competition, the yield is a big wildcard.

Kenyatta:
BUD's current yield is 3.7% but given its irregular dividend policy, it is impossible to tell what the yield will be going forward.

Renetta:
BUD is one of those stocks that is valued based upon its payout and rightfully so; the payout is huge and is likely to make up the lion's share of returns going forward.

Tracie:
I think it will be closer to flat and that presents a significant problem for the valuation not only on an earnings basis, but for the dividend.

Yahaira:
Given the headwinds for revenue and the fact that margins are ticking down, I don't see how it will be able to post 4% EPS growth consistently.

Gema:
The fact that BUD is seeing so much competition and ceding share quarter after quarter is concerning to me.

Estela:
BUD is a long way from that and in fact, would probably like to just post flat EPS given that it is having so much trouble doing so.

Anheuser-Busch Inbev Sa (NYSE:BUD)
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