Dividend Investors: This Stock Yields Over 6%
Are you an income investor on the lookout for a new dividend gem? Here?s one in the gaming and hospitality industry with a dividend yield of 6.90%. Is this stock a good buy?
Gamehost Inc. (TSX:GH) is a Red Deer, Alberta-based company that operates hospitality and gaming properties. This is a small company with a market capitalization of $247 million, but it has a lot going for it. Let?s take a look.
Gamehost by the numbers
The company reported second-quarter earnings in August of $1.07 per share, in line with analyst expectations. It beat 2016?s Q2 results by $0.68 per share. The stock?s net income grew by 21% year over year, among the strongest growth in the industry.
Gamehost?s net profit margin sits at 25.74% ? a leader in the industry. For comparison, Great Canadian Gaming Corp. (TSX:GC) has a profit margin of 14.76%, and Pollard Banknote Ltd. (TSX:PBL) has a profit margin of 5.48%. Over the previous three years, earnings and revenue declined slightly, but the 2017 results have been good so far, and expectations are positive heading into 2018. The company?s debt-to-net-equity ratio is only 0.43, so the company has far more equity than debt, which also bodes well for the future. The stock?s trailing P/E ratio sits at 14.97.
The stock currently trades about midway between its 52-week low of $8.94 and its 52-week high of $12.09. Analysts expect it to trade in the $10-11 range over the next 12 months.
The dividend offering
Let?s look at the great dividend yield being offered. Gamehost offers a monthly dividend that currently sits at $0.0575 per share for an annual payout rate of $0.69 per share. This gives it a hefty yield of 6.90%. The yield over the past five years hasn?t dipped lower than 5.91%, so Gamehost pays a quality dividend reliably.
Bottom line
Overall, things look good for this small company. It?s had good results in 2017, and it boasts an industry-leading profit margin, so Gamehost knows how to take investor dollars and turn them into profits. It also offers a good dividend. If you want to add a dividend stock to your Foolish portfolio, consider making Gamehost that company.
1 Massive Dividend Stock to Buy Today (7.8% Yield!) - The Dividend Giveaway
The Motley Fool Canada's top dividend expert and lead adviser of Dividend Investor Canada, Bryan White, recently released a premium "buy report" on a dividend giant he thinks everyone should own. Not only that - but he's created a must-have, exclusive report that outlines all the alarming traits of dividend stocks that are about to blow up - and how you can avoid them.
For this limited time only, we're not only taking 57% off Dividend Investor Canada, but we're offering you special access to two brand-new reports, free of charge upon signing up. They will outline everything you need to know so you steer clear of dividend burn-outs AND take advantage of the dividend giants in the Canadian market.
While this offer is still available, you can find out how to get a copy of these brand-new reports by simply clicking here.
More reading
3 Stocks That Have Outperformed the TSX and Could Be Great Buys Today
Why it Might Be Time to Sell Great Canadian Gaming Corp. and Quebecor, Inc.
You Have to Know When to Hold?em: Great Canadian Gaming Corp.
Fool Contributor Susan Portelance has no position in any stocks mentioned.
1 Massive Dividend Stock to Buy Today (7.8% Yield!) - The Dividend Giveaway
The Motley Fool Canada's top dividend expert and lead adviser of Dividend Investor Canada, Bryan White, recently released a premium "buy report" on a dividend giant he thinks everyone should own. Not only that - but he's created a must-have, exclusive report that outlines all the alarming traits of dividend stocks that are about to blow up - and how you can avoid them.
For this limited time only, we're not only taking 57% off Dividend Investor Canada, but we're offering you special access to two brand-new reports, free of charge upon signing up. They will outline everything you need to know so you steer clear of dividend burn-outs AND take advantage of the dividend giants in the Canadian market.
While this offer is still available, you can find out how to get a copy of these brand-new reports by simply clicking here.
Fool Contributor Susan Portelance has no position in any stocks mentioned.