Brown-Forman beats in Q4 -- should you step up to the bar and buy?

Guidance calls for Brown-Forman to do somewhere between $2.60 per share and $3.00 per share in the next fiscal year. At Wednesday's closing price of $46.74 for the B shares, the stock carries an implied P/E of between roughly 16 and 18.

While that isn't overly expensive for this kind of business in my opinion, especially when the stock has been performing very well (it's up over 20% in the last few months), I would rather investors pick up shares at a higher dividend yield. Right now, the yield is about 2.5%. I'd like to see something closer to 3%.

I suppose that, if you wait for a higher yield, you could miss out on the momentum behind the name. Then again, as I've been saying all along, the market might be due for a correction. I think a company like Brown-Forman works best as a long-term holding. You know -- buy, hold, take dividend and reinvest. And dollar-cost-average, of course.

That's what I do with my Coca-Cola (NYSE: KO) shares. I know Coke isn't into alcoholic products, but they both distribute beverages and use cash flow to reward dividend-seeking investors, so I see the long-term strategy as being similar. It's worth noting that Brown-Forman stated in its latest dividend release that the company has been paying cash distributions for over six consecutive decades.

Bottom line: I thought the quarter was good considering the economic climate. I think dividend investors can look at Brown-Forman as a possible investment idea, but I would be happier with a lower stock price as an entry point.

Disclosure: I own Coke; positions can change without notice.