A company that dominates a duopoly market has been added to the BDS (Best Dividend Stocks) list. A duopoly market is when there are only two companies that dominate an entire market. In such a market condition it’s very hard for new competitors to gain ground due to high barriers to entry.
Our latest addition to the Best Dividend Stocks list has over 200% return on equity, which is only going to improve as the company recently reauthorized a massive buyback program.
Its latest 13F filings reveal that 69% of outstanding stock is held by institutional investors. In addition, analysts expect an 8.51% EPS growth from 2016 to 2017. Couple that with a mid-50% payout ratio and you have a strong case for the company to keep growing its dividend next year.
Though the company has a long track record of paying dividends since 1970, investors are valuing the stock at 18x 2016 P/E, which is very reasonable according to our DARS model.
To summarize, here are 4 reasons you should own this stock:
- Dividend-paying history since 1970.
- A major company in a duopoly market.
- Company has more than 200% average return on equity.
- 69% institutional holding according to the latest 13F filings.