DF - Dean Foods: Too Much Depends On Perfect Execution
Dean Foods (DF) fell sharply after the company reported Q2 results, and the stock now sits just above its 52-week low. At a P/CF multiple of 3.7x (dividend yield of 4.7%), DF is trading at a cyclically low valuation, and I can see how some people might consider it as a possible contrarian play. There are two key issues to consider here: 1) the safety of the dividend and 2) the likelihood that volumes will start growing again. If you believe the dividend is safe and/or that volumes will recover, then an investment