Q: What is your opinion of Decisive Dividend Corp?
5i Research Answer:
It is a smaller name ($163M market cap), and is not without its risks. It pays a strong dividend yield of 6.7%, its free cash flows are decent, and its profit margins are thin, but growing slightly. It trades at an OK valuation of 21X forward earnings and analyst estimates have been trending up. Estimates are calling for roughly 6% growth in the next few years, but its high yield is attractive for some investors. We think it looks OK here for an income investor, but we would note its small size and high valuation.