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Should Devro plc (LON:DVO) Be Your Next Stock Pick?

Simply Wall St

Devro plc (LON:DVO) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of DVO, it is a highly-regarded dividend-paying company with a great history of delivering benchmark-beating performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Devro here.

Proven track record average dividend payer

DVO delivered a bottom-line expansion of 8.5% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did DVO outperformed its past performance, its growth also surpassed the Food industry expansion, which generated a 6.5% earnings growth. This is an notable feat for the company.

LSE:DVO Income Statement, September 2nd 2019

DVO rewards its shareholders with attractive dividend yield, higher than the low-risk savings rate, which is able to compensate investors for taking on the risk of holding a risky stock over a riskless asset. That said, please remember that dividend yields are a function of stock prices and corporate profits, both of which can be volatile.

LSE:DVO Historical Dividend Yield, September 2nd 2019

Next Steps:

For Devro, I've put together three essential factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for DVO’s future growth? Take a look at our free research report of analyst consensus for DVO’s outlook.
  2. Financial Health: Are DVO’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of DVO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.