Packaging Company Amcor Rated Buy, Delivering 5% Dividend Yield...

Packaging Company Amcor Rated Buy, Delivering 5% Dividend Yield & Low Valuation


I think that this growth trend, for a younger company like this, is a major positive point and I always look for a good dividend growth story to tell, backed by the data. The story is that in a short few years, the company was able to return capital back to shareholders when even certain tech startups on Silicon Valley have not been able to do so. Finally, I want to see dividend payout stability, especially since many of my readers rely on the stable dividend income that these types of stocks offer. Again, I think of it like investing into an existing stream without having to build the business from scratch on my own. In looking at the table below, you can see stable payouts over the last few years, with dividend increases in this time period. If I was holding 1,000 shares, for example, I could realize $122 in quarterly cashflow from the dividends on this stock. (1,000 shares x $0.122 per share). for this stock, on the basis of steady dividend payouts, dividend growth in a short time period of years, and above-average yield for its sector., to simplify things I have chosen a single metric to focus on, and that is the price-to-earnings ratio , both the trailing and forward PE, as it tells me what the market is pricing this stock at in relation to its earnings. Although a lower-than-average forward P\u002FE may indicate the market has lower confidence in the forward earnings potential of this stock, it also presents a value-buying opportunity, in my opinion, if most of the other fundamentals are strong. Considering the, that firm's forward PE is about 5% higher than the sector average, so it is also practically in line with the sector. Both of these stocks present similar valuation stories, I think.Based on the data, I think this valuation metric is a strong for this stock and I see it as an opportu nity. However, in the next two sections, I will talk about fundamentals such as revenue & profitability, which should be considered along with valuationNow, we've come to a topic I think many analysts & investors look at, which is the top-line revenue growth. Because this metric essentially shows money made before expenses & taxes, it does not indicate this firm's effectiveness at managing costs, but at growing its revenue side of the house. Manageable growth is important, in my opinion, because companies have competition and are striving to capture market share.