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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Universal Corporation (NYSE:UVV) due to its excellent fundamentals in more than one area. UVV is a well-regarded dividend payer that has been able to sustain great financial health over the past. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Universal here.
Established dividend payer with adequate balance sheet
UVV's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. With a debt-to-equity ratio of 36%, UVV’s debt level is acceptable. This implies that UVV has a healthy balance between taking advantage of low cost debt funding as well as sufficient financial flexibility without succumbing to the strict terms of debt.
Income investors would also be happy to know that UVV is one of the highest dividend payers in the market, with current dividend yield standing at 5.6%. UVV has also been regularly increasing its dividend payments to shareholders over the past decade.
For Universal, I've compiled three essential factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for UVV’s future growth? Take a look at our free research report of analyst consensus for UVV’s outlook.
- Historical Performance: What has UVV'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.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of UVV? 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 email@example.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.