Quantcast
Are you getting the best rate from your broker?
Compare your broker's rates now to find out if you can save money

Choose your broker below
Thank you for selecting your broker
We are redirecting you to the Broker Center now
Welcome to Dividend.com. Please help us personalize your experience.

Select the one that best describes you
Thank you for your submission, we hope you enjoy your experience
ALERT

An Advertising Gem Added to the Best Dividend Stock List

Dividend logo

In this stock market environment, it is hard to find winners. Many sectors including energy, technology, and financials are struggling—but one area that remains strong is consumer products. Among consumer based companies, WD-40 Company (WDFC ) is a notable outperformer. The stock is up 28% just in the past one year, and it is up 6% year-to-date. It has handily outperformed the S&P 500 Index, which is down 9% in the past year.

Shares of WD-40 recently closed at all-time highs. In fact, the stock has posted positive returns for the trailing one-year, three-year, and five-year periods. The company is doing a good job of growing sales and earnings, but the bulk of the gains in stock price are due to multiple expansion. Investors appear to be extremely optimistic about the company’s growth prospects, but it is doubtful whether this level of optimism is warranted. Going forward, investors should expect continued growth in earnings per share and dividends. However, the current valuation does not offer investors a margin of safety. As a result, income and value investors should wait for a decline in the stock price in order to get a better buying opportunity.

To read the Full Story, Go Premium or Log In

Popular Articles

Best Online Brokers

At Dividend.com a large portion of our readership is of a discerning, self-directed nature. As...

Premium Shutterstock 540843040
News

The Portfolio Size Effect

You could be in danger. There’s the risk that you’re not calculating carefully when it comes to...

Premium Shutterstock 546595339
News

The Market Wrap for January 13: The 'Trump Bump' Gets Bumpy

Since the surprise election of Donald Trump, the markets have been on a straight upwards...