A stock with a dividend of 3.9% is not something special? Is correct! In it fell man-Shares (WKN: 577220) is a historically favorable valuation. If we look at the share price development, we can of course see a very, very clear divestment. It’s a realization.
After all, stock certificates have collapsed from € 46.88 to € 38.08 since the start of the week due to a profit warning. A discount of almost 19% within a few trading days allows this stock to have such a high dividend.
However, I use the cheaper evaluation target directly once to buy it again. The profit warning is in a way essential. It is about less sales and significantly less earnings per. Even the result before tax is said to be below the previous year’s figure, so the growth targets for this year are gone. But: There is still a lot of quality that I trust in the long run.
Fielmann share: That’s why I buy the dip with a dividend of 3.9%!
Of course, the short-term and perhaps even medium-term outlook for the Fielmann stock is now a little more uncertain, and the fundamental valuation is not necessarily favorable. While the price-to-cash ratio is now below 10, the price-to-earnings ratio on a 2021 basis is still quite strong at 22.5. This may therefore be another feature. But if management manages to turn around in the medium term and return to pre-pandemic earnings per capita. share, the price-to-earnings ratio would only be 18. It is at least more moderate.
However, it is primarily the business model that I like about the Fielmann share, also in terms of the possible dividend of 3.9%, which I consider to be quite affordable in the long run. Glasses and vision aids are a good mix of consumables. But also with a medical aspect. It is about correcting the vision. It is something that you as a consumer who is dependent on visual aids, at least can not postpone forever. There is a degree of cyclicality, perhaps consumers are not buying the most expensive glasses now. But there is a certain need to switch to new models.
To me, the Fielmann stock is therefore a quality stock with a timeless business model. Sales and profits should therefore be possible in most years. And thus a return for long-term investors. Especially since expansion to other markets and regions is still possible, even within Europe. Opportunities like e-commerce also offer potential. But at its core, it’s about the simple business model of selling glasses that fascinates me as an investor.
Strong name, founder-led and more!
However, the Fielmann share has other qualities. In the field of opticians, it is clearly the market leader in our latitudes. It is also a business run by the founding family. This means that the interests of us private investors and top management are linked. Another property I really appreciate.
To be honest, I do not know if the yield of 3.9% is bound to be sustainable next year. During the corona pandemic, management showed that, if necessary, a stable yield is sometimes dispensed with. However, I believe that there is always an opportunity to find our old strengths operationally. Therefore, I like to use the dip with a cheaper valuation and the long-term oriented timeless potential.
Article Buy this stock with a yield of 3.9% now! appeared for the first time on The Motley Fool Germany.
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Vincent owns shares in Fielmann. The Motley Fool does not own any of the listed shares.
Broget Fool Germany 2022