One dividend stock that I missed out on was really vehicle inspection and general testing company VICOM
- A strong business model that is based on something always needed
- Zero debt
- 43% of balance sheet is in cash, 16% of its market cap is in cash
- Yield has went down to 3.4%
- One of the few stocks that have been resilient in the GFC
- Have been raising dividend payout yearly
- PTB is around 3.8 times indicating that return on assets should be pretty high
- PE of 14 times or 7% earnings yield
Vicom announced their results today again. View it here. Once again it’s the same old story, Profit up 13%, adding more cash.
I waiting for it to correct to add in. I missed my chance. This is a stock that have very strong moat, low capex and very cash flow generating.
Which would I invest in? A REIT at 6-7% yield or VICOM? I believe VICOM stands out. Even though its yield is lower, but its earnings yield is unlevered compared to the REITs and very defensive. The only thing is the price we pay is high from the historical perspective. Not much safety. Definitely a grower.