Q: Excluding a takeover I don't see this as a big outperformer but the dividend is nice. Your thoughts on the stability of the payout and a brief comment on the company would help me decide if I add to my position on weakness.
Many Thanks!
Many Thanks!
5i Research Answer:
It is cheap at 7X forward earnings and the 4.8% dividend yield is nice but growth is not overly inspiring at mid-single digits on the top line. Debt is not overly concerning but gross margins have been compressing over the last few years. We don't see many obvious reasons to add to the name.