Another dividend growth stock bites the dust.
Berkshire Hathaway has been approved to acquire HNZ at $72.50 per share. This amounts to a 20% gain over yesterday's closing price. To be honest, I'd rather continue to be a HNZ shareholder than take the capital gain. I really like what Heinz is doing internationally, apparently Buffet does too.
The timing of the deal is actually perfect for me. I bought my shares 14FEB2012, meaning I only need to wait one more day for the capital gains to be taxed at the long term rate. I originally bought the shares for $51.73. In the end I'm getting a 40% capital gain plus a years worth of dividends. Total return will equal about 43%. Not bad for 366 days.
I will be using the cash to buy a replacement dividend growth stock. I'm currently looking at GD and TD. I'm leaning more towards TD at this time, but will have to see what the market presents.