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Why Dunelm Group plc (LON:DNLM) Is An Attractive Investment

Bernadette Hatcher

I’ve been keeping an eye on Dunelm Group plc (LON:DNLM) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe DNLM has a lot to offer. Basically, it is a notable dividend payer that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Dunelm Group here.

6 star dividend payer with adequate balance sheet

DNLM’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that DNLM has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. DNLM appears to have made good use of debt, producing operating cash levels of 0.58x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

LSE:DNLM Historical Debt August 17th 18

DNLM’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 4.93%.

LSE:DNLM Historical Dividend Yield August 17th 18

Next Steps:

For Dunelm Group, I’ve put together three pertinent factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for DNLM’s future growth? Take a look at our free research report of analyst consensus for DNLM’s outlook.
  2. Historical Performance: What has DNLM’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 DNLM? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.