On August 10th I recommend dividend investors buy Highway Holdings (NASDAQ:HIHO) due to their >10% dividend yield, high cash position (75% of the market cap was in cash), zero debt issue, and deep value opportunity (EV/EBITDA and EV/Revenue was 2.53 and 0.19, respectively). The company has exceeded my results and has hit my bull case scenario (price target of $5.06/share). This is without any fundamental changes to the business. The only news that was released since my article on HIHO was when the Street released an article titled "4 Super-Safe High Dividend Stocks to Buy Now." I am thus attributing the recent rise in the stock price to more investor attention of the company from my article and more importantly, the Street's article.
The only thing that has changed since my original thesis on HIHO is the price. The dividend is still sustainable and I have a high conviction that the company will continue to perform profitability. You can't pick this company up for the price in which you could around a month ago, but you can still lock in a decent dividend at a moderate price. If you are a deep value investor, I would suggest looking somewhere else, for HIHO does not present itself as a deep value play anymore. Dividend investors on the other hand should love this company due to the sustainability of its high dividend. All in all, I believe that HIHO is a good income stock. If the price falls back into deep value territory value guys may want to take a second look.
Source: Seeking Alpha
Related Articles:
- 6 Companies With The Power of 5/15 Dividend Growth
- 9 High Rated, Lower Debt Dividend Stocks With A Reasonable Payout
- Searching the World For The Best Dividend Stocks
- What's Your Retirement Vision?
- Stock Dividends - The Gift of Nothing
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Strange but true: seniors fear death less than running out of money in retirement. So what's a retiree to do? You could cut your expense...
-
If you're anticipating a long retirement, you'll want to remain invested in stocks to give your money a chance of outpacing inflatio...
-
If I could teach investors one thing, it would be how to identify and value “Forever Assets.” These businesses constitute the single best wa...
-
When writing this article, I was looking for an ideal list of dividend-paying stocks that consistently raise their dividends each year. In a...
-
Dividends are profit sharing payments sent out to stockholders. Companies have a variety of reasons for paying them, ranging from simply swe...
-
All bull markets come to an end, and this past decade has been a remarkable one for investors who've escaped largely unscathed from any ...
-
Dividend-paying stocks from generally low-risk, top notch companies are a brilliant way to create steady and solid income streams to supplan...
-
Nothing, of course, is forever. Sears would have been a very good investment for a long time had you purchased it before or even during the ...
-
One of the most exciting things about many dividend stocks is that they not only pay regular dividends, but also increase those dividends on...
-
When writing this article, my plan was to find an ideal list of high-yield stock that is expected to have a higher dividend next year. To ma...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.