I uncover a high-quality dividend growth stock that appears to be undervalued each week for Daily Trade Alert, which is a site that focuses on dividend growth investing, stocks, and unique investment opportunities. I’ve been writing for them for years now, and they’re just great over there. Each week, I publish an excerpt of my work, when it’s fresh off the press. That way, you readers are given the opportunity to check it out. The content is totally free. I hope you enjoy!
Before I started aggressively saving and investing in early 2010, I had thought the idea of retiring early was a total pipe dream.
Even the idea of a traditional retirement in your early 60s seemed harder and harder to attain.
At least, that’s the ongoing rhetoric that the media and politicians spin.
And I bought into that. I really did.
But then I started educating myself.
And my eyes were opened.
Image courtesy of: Stuart Miles at FreeDigitalPhotos.net.
I am not familiar with this company, I will have to research it more. Initial review it looks promising.
Derrick,
Best of luck with the research!
Cheers.
Interesting choice and well thought out based on your article. I’m not sure I want the exposure to traditional retail at the moment, at least it’s not first on my to buy list, but I really like the fact that they have no long term debt. It’s also a pretty iconic retailer from the perspective of what I see with people interacting with their products and from what I’ve seen a fairly brand loyal clientele. Thanks for the interesting read!
DD,
Yeah, the balance sheet, online exposure, and well-regarded brands really separate them from your general merchandisers. One of the more high-quality retailers I’ve ever come across.
Cheers!
Thanks for the solid article Jason. The only part of WSM that makes me nervous is how it performed during the last recession. EPS fell from $1.79 in 2008 to $0.28 in 2009 and $0.73 in 2010 before recovering to $1.87 in 2011. When the US has another recession, this is one of those stocks that is just going to get hammered, but besides that I love it. Especially how well its e-commerce segment is doing.
Peter,
Definitely. Certain industries hold up better during recessions, and I would say home furnishings is not one of those industries. However, the financial crisis was probably a once-in-a-generation event, yet WSM kept right on pumping that dividend. So that’s a pretty strong test of durability. Moreover, that would have been an excellent opportunity to pick up shares during a period of temporary distress. It seems that the stock’s price is pricing in some kind of major problem, yet the fundamentals remain solid. So there’s apparently some measure of disconnect there. It’s indeed the kind of stock you want a big margin of safety on, which looks to be present right now. Nonetheless, it’s also a stock that I think of as more of an ancillary position for a portfolio, as it is for mine.
Thanks for dropping by!
Best regards.