Fastenal Among "7 Unloved Stocks Ready to Go Higher"
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Fastenal Among “7 Unloved Stocks Ready to Go Higher”
Fastenal has grown its dividend payouts by an average of 45% over each of the last 10 years, SeekingAlpha.com reports. The service named Fastenal one of “7 Unloved Stocks Ready to Go Higher.”
While the growth rate has slowed in recent years, “the 12 years of consecutive payout increases have added stability to the picture.”
“The current yield is just 1.5%, but if Fastenal can keep up the dividend growth rates, there shouldn’t be too much concern for future yield on cost,” according to SeekingAlpha.com.
“The company has turned selling fasteners into an ultra-profitable business without creating a bloated cost-structure.”
The report said Fastenal is “well-placed for some explosive growth over the next decade” and valued company shares at $80 each in 2012.
“Our intrinsic value for the company is nearly double that figure, for 5-6 years out. We think this is a long-term play with excellent long-term potential for capital appreciation.”
FIN subscribers can read how Fastenal’s fastener operations have performed over the last three years by clicking on the FIN Stock Report.
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