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 Peab AB (publ) (STO:PEAB B), it is a dependable 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. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Peab here.
Established dividend payer with adequate balance sheet
PEAB B'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 an important determinant of the company’s health. Debt funding requires timely payments on interest to lenders. PEAB B’s earnings sufficiently covered its interest in the prior year, which indicates there’s low risk associated with the company not being able to meet these key expenses.
For those seeking income streams from their portfolio, PEAB B is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 5.3%, making it one of the best dividend companies in the market.
For Peab, I've put together three important aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for PEAB B’s future growth? Take a look at our free research report of analyst consensus for PEAB B’s outlook.
- Historical Performance: What has PEAB B'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 PEAB B? 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.