Why Deutsche Börse AG (ETR:DB1) Could Be Your Next Investment
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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 Deutsche Börse AG (ETR:DB1), it is a well-regarded dividend-paying company 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. If you're interested in understanding beyond my broad commentary, read the full report on Deutsche Börse here.
Established dividend payer with adequate balance sheet
DB1'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. DB1's has produced operating cash levels of 0.57x total debt over the past year, which implies that DB1's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For those seeking income streams from their portfolio, DB1 is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.2%.
Next Steps:
For Deutsche Börse, there are three important factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for DB1’s future growth? Take a look at our free research report of analyst consensus for DB1’s outlook.
Historical Performance: What has DB1'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 DB1? 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.
