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Should Tamawood Limited (ASX:TWD) Be Your Next Stock Pick?

Simply Wall St

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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Tamawood Limited (ASX:TWD), it is a well-regarded dividend-paying company that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Tamawood here.

Flawless balance sheet average dividend payer

TWD is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. Investors should not worry about TWD’s debt levels because the company has none! This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.

ASX:TWD Historical Debt, May 18th 2019

For those seeking income streams from their portfolio, TWD is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 8.1%, making it one of the best dividend companies in the market.

ASX:TWD Historical Dividend Yield, May 18th 2019

Next Steps:

For Tamawood, I've compiled three fundamental factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for TWD’s future growth? Take a look at our free research report of analyst consensus for TWD’s outlook.
  2. Historical Performance: What has TWD's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TWD? 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.