Brown-Forman Corporation (BF.B), BEAM Inc (BEAM): Take a Shot, or 3, at Growth With These Companies

The free cash flow in fiscal year 2013 decreased due to the acquisition of United Spirits. However, the company is confident in its ability to generate higher cash flow in the future and return it to investors in the form of a dividend. The company is expected to declare a total dividend of $1.934 billion in fiscal year 2013 and almost $2.1 billion in the next fiscal year from $1.7 billion last year.

Conclusion

Brown-Forman Corporation (NYSE:BF.B)’s expansion plan of Wood Reserve Distillery and promotional activity for Jack Daniel’s will drive future growth.

BEAM Inc (NYSE:BEAM)’s debt restructuring program and previous acquisitions allow the company to generate more growth opportunities.

Diageo’s acquisition of United Spirit will help in enhancing its footprint in India as well as help leverage the United Spirit brands to enhance itself. Its strong cash flow enables the company to maintain future dividend payouts.

I recommend a buy on all these stocks.

The article Take a Shot, or 3, at Growth With These Companies originally appeared on Fool.com.

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