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Strategies & Market Trends : Dividend investing for retirement

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Graustus
To: sm1th who wrote (29580)8/14/2018 10:04:18 AM
From: Paul Senior1 Recommendation   of 34328
 
OMI. Ok, I'll take shares.

Motley Fool guy says:
The company's full-year guidance is for adjusted net income per diluted share of between $1.40 to $1.50, and management says it's "confident" in its "ability to achieve a double digit, year-over-year adjusted earnings growth rate next year. Nevertheless, investors don't appear willing to give management the benefit of the doubt. In the past year, the company's been battling weaker pricing, margin headwinds, and supply bottlenecks. Perhaps a wait-and-see approach to this stock is warranted until the all-clear is sounded.

If management is right though, that'd make forward p/e 10-11x on today's price. There hasn't been a year in the past ten when OMI did not sell for at least a 15x p/e. So I look at this as a reversion-to-mean play with around a 7% div yield while waiting. (That dividend's been increased every year past ten.)

Jmo, and I'm wrong many, many times.
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