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REDDIT

Thoughts on INGR as a dividend/value holding?

First time caller, long time listener.

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I am 38. Looking at building a div income sleeve that I can access in about 10-14 years. All of this would be in a taxable account and probably never go beyond 5-7% of that acct in my overall portfolio.

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Ingredion (INGR) popped up in my research for a long-term dividend portfolio. Current valuation looks reasonable: P/E around 10, P/B around 1.4, yield around 3.3%, payout ratio roughly 30%, and current ratio above 2.

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Thesis: boring food-ingredient business, stable demand, specialty ingredients/margin improvement, dividend looks well-covered.

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Bear case: commodity/input-cost exposure, low growth, and maybe cheap for a reason. Acquisition of Tate&Lyle is expensive (premium). I am a little concerned with worsening weather conditions like drought or water shortages, but, not sure what to do about that.

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Per StockAnalysis:

Valuation Ratios

\- The trailing PE ratio is 9.51 and the forward PE ratio is 8.73.
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Ingredion's
\- PEG ratio is 0.81.

\- PE Ratio 9.51

\- Forward PE 8.73

\- PS Ratio 0.88

\- Forward PS 0.87

\- PB Ratio 1.45

\- P/TBV Ratio 2.03

\- P/FCF Ratio 14.16

\- P/OCF Ratio 7.06

\- PEG Ratio 0.81

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Other positions in this portfolio are vti, schd, pru. I opened a position in PRU in the mid/lowish 90s. Approaching 110 puts it out of my buy window so looking for other ideas that are not held in schd.

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