What Do Rising Corporate Debt Levels Mean

| October 16, 2018
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On the heels of my recent post on Corporate Debt to Cash Ratios, I wanted to provide an update on the European corporate debt markets, as well as an example of what this means for stock investors.

In the below chart, you can see equity investors have been rewarded by focusing and allocating capital to companies with low debt levels and high profitability.

On the flip side, let’s take a look at AB InBev (Budweiser’s parent company).

Yesterday the stock took a drubbing as they announced had to cut their dividend in half to start paying down on their $103 billion pile of debt.

You have been warned.

 

Stay Tuned, Disciplined & Patient! {TJM}

The Investor & Character Equation (ICE) | S + R = O

 

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