Keeping with my Coca-Cola bottler strategy, yesterday I added a new holding to my portfolio. Embotelladora Andina S.A. is based in Chile with territory covering Brazil, Argentina, Paraguay in addition to Chile. Their product line includes Coca-Cola products in addition to bottling and distributing outside brands including Amstel, Dos Equis (XX), Heineken and others. They have an integrated operation, meaning they manufacture the bottles, cases and caps used in their bottling operation.
Andina has two share classes, the A shares carry greater voting power while the B shares pay a higher dividend. As I don’t expect to accumulate enough shares to impact the board, I chose the higher dividend. The shares are traded on the NYSE as an ADR administered by Bank of New York Mellon (BK), another of my holdings. The ADR ratio is 6 shares of Andina-B (Chilean exchange) to 1 AKO.B (NYSE).
A dividend is paid almost quarterly (Feb, Jun, Sep, Nov) but is variable as the cycle is Provisorio/Adicional. The company’s goal is to pay approximately 35% of earnings to shareholders. The TTM for the ADR is $.70 which translates into a current yield of 2.88% at my $24.25 purchase price. The forward (12 month) yield would be about 3.1% depending on actual declarations and the future exchange rate.
A also added to my TD holdings making it a full satellite position (1.5% of portfolio dividends) due to weakness (can you say Wells Fargo?).