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Silgan Holdings stock rises on record sales, net income (NYSE:SLGN)
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SLGN trying hard for another run
I wish I can post my trades for tomorrow but community rules won’t allow it, so I am average down four stocks that I own by adding more. ODFL, ISSC,VITL,SLGN.
I’m 37, UK-based, and new to stocks/shares. Over the past month I’ve been researching and testing Trading 212 with a small amount of money. I’m now ready to dive in, though it feels about 15 years too late! My goal is to build a portfolio to support/top up my retirement in about 30 years, when I’m in my mid-60s. I’d say I’m moderate risk, leaning toward 90% ETFs and 10% individual companies (I enjoy the research and number crunching thanks, to my autism!). I have £10k to start with and plan to add £200 per month, plus more when possible. My initial plan was Vanguard FTSE All-World Acc (VWRP), but I’m undecided whether to stick with a single ETF or build a pie of multiple ETFs or perhaps add gold (SLGN). Any recommendations? From my research, VWRP tends to outperform over the long term, or at least shows only small differences compared to most ETF pie combinations I’ve considered. Thanks!
SLGN. I hope I'm right because I bought a few grand worth when the stock dropped after their earnings announcement. That's exactly what I expected would happen and had a price alert set for it. They're vertically integrated, and they source their steel domestically. This should give them some resilience against tariffs. A lot of commodity companies require Silgan Holdings services.
>It is a large, profitable but slow moving business. So future wise, increasing revenue isn't the driving factor behind SP growth. Maybe some favorable financing deals over the last decade with low interest rates helps with their debt management, but reducing costs through advancing technology and maybe good financial management is where you expect them to increase their margins/earnings. I guess I'm just having a hard time seeing them grow revenue or reduce costs so much, that their EPS can continue to grow while they continue with a paltry dividend. I mean at what PE does a company that is large, slow growth start issuing a higher dividend? At some point don't they just need to return some of that money to investors since they have no need for it, either through a higher dividend or stock buyback? You're applying what you think to a specific company. Clearly revenues and dividends are not ***guaranteed*** to grow. But given that companies do over a long period of time grow their earnings and revenues, they typically will raise their dividends as well over time. Just because a company is not growing fast does not mean they will not grow at all, especially over a longer term time frame. Regardless, I can even use your example here if Silgan to showcase this. In 2018, Silgan's dividend was paid out at 10 cents per share every quarter. Fast forward to 2023, and the dividend is now 18 cents per share. At the time of purchase, the yield for SLGN was around 1.4% yield. But if you held until 2023, where the yield is now 18 cents per share, the yield on the ***original*** purchase price would have grown to around 2.5%. Still nothing amazing, but it IS growth, and that also is ignoring capital appreciation of the stock. ​ I suppose the main point here is that ***in general,*** the reason to own dividend yielding stocks versus bonds or fixed income sources is that you are willing to take on additional risk in return for the ability to see long term growth in capital as well as yield. Bond yields will never grow from time of purchase, so what you bought is what you will get, which can be both good and bad.
I have been loving Silgan Holdings ($SLGN). To me, it's like a hidden gem. Excellent history of driving FCF/share growth and mgmt is focused on it as evidenced by it littered throughout its decks. "compounding FCF per share" "FCF per share growth", etc. That said, SLGN has a low payout and thus inherently tons of upside to grow its dividend. The Co. has grown its dividend extraordinarily well over the last few years and that will continue, I expect. Incredibly stable business with consistent growth.
SLGN, FAST, PARA, and a set of diversified funds.
I don’t buy the top holdings since they are weighted heavily in my 401k and it closely resembles VTI (AAPL, etc). I have been examining more fringe picks though for example O vs. BLK and you can see the weighting (0.09% vs. 0.30 respectively I believe). Companies like SLGN & PLTR. You can see how they value it compared to the whole to just get some additional info.