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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on The Cato Corporation (NYSE:CATO) due to its excellent fundamentals in more than one area. CATO is a well-regarded dividend payer 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. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Cato here.
Flawless balance sheet average dividend payer
CATO 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. Looking at CATO's capital structure, the company has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
For those seeking income streams from their portfolio, CATO is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 10%, making it one of the best dividend companies in the market.
For Cato, I've put together three fundamental aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for CATO’s future growth? Take a look at our free research report of analyst consensus for CATO’s outlook.
- Historical Performance: What has CATO'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 CATO? 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 firstname.lastname@example.org. 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.