|
Today, we are officially adding a brand-new stock to the High Yield Portfolio.
It’s got a great underlying business that undergoing a massive cleanup.
Management is selling off non-core divisions to wipe away hundreds of millions in debt, leaving behind a lean cash machine.
Here is why this opportunity is so exciting:
8%+ Starting Yield: A huge payout that is safely covered by recurring cash flows.
Hidden Growth: This company has revenue under contract that hasn’t started flowing yet.
Aggressive Buybacks: Management is skipping expensive new projects to buy back their own cheap shares instead.
When the market finally wakes up to the improved balance sheet, simplified business, and safe dividend yield, the multiple re-rating could be significant.
But with the starting dividend yield we’re buying at, we don’t need multiple expansion to generate attractive returns.
Whenever you’re ready
Whenever you’re ready, here’s how I can help you:
✍️ Three articles per week (Monday, Wednesday, and Saturday)
📚 Full access to our entire library of data-driven articles
📈 An insight into our Portfolio full of interesting Dividend Stocks
🔎 Full investment cases about interesting companies
One Dividend At A Time,
-TJ
Used sources
Interactive Brokers: Portfolio data and executing all transactions
Fiscal.ai: Financial data
Disclaimer
As a reader of Compounding Dividends, you agree with our disclaimer. You can read the full disclaimer here.
Invite your friends and earn rewards
| ||||||||||