Dividend champion stock: This single-digit PE multibagger stock delivered dividends consistently for past two decades YoY
The company, which has a good track record, consistently declared dividends for the last five years. It has declared 41 dividends since September 5, 2000.
As per one of the studies undertaken in the USA, it was observed that capital gains accounted for only 53 per cent of all shareholders' gains whereas the other 47 per cent was generated from dividend payoffs.
Dividends are the only tangible benefit that an investor receives from owning shares in a company and reflect a lot on various aspects of his investment ranging from a business model and management quality to the growth potential of the company, and earnings predictability.
Aggressive investors are blindfolded when it comes to dividends as they do not pay too much attention to the dividend-paying capacity of an investment as their area of focus remains on making capital gains i.e., selling a stock at a higher price than what it was bought for. These investors feel that buying dividend stock is more suited for risk-averse folks rather than for the aggressive investor, a mistake that they repent later.
So, in this article, we will be talking about dividend champion stock, which has not only given regular dividends but also, offered multi-bagger gains in the last three years as it generated nearly 4x returns. What’s icing on the cake is that the stock is trading in single-digit PE!
The stock’s name is Polyplex Corporation, which is engaged in manufacturing BOPP, Blown PP/PE, and CPP films used in the flexible packaging industry as well as for industrial usages like release liners, tapes, labels, etc.
The company, which has a good track record, consistently declared dividends for the last five years. It has declared 41 dividends since September 5, 2000.
Here is the dividend track record of the company since the year 2020:
|
Announcement date
|
Dividend type
|
Dividend in %
|
Dividend in Rs
|
|
25-05-2022
|
Final
|
210
|
21
|
|
14-02-2022
|
Interim
|
350
|
35
|
|
15-11-2021
|
Interim
|
150
|
15
|
|
25-05-2021
|
Final
|
170
|
17
|
|
16-08-2021
|
Interim
|
330
|
33
|
|
09-02-2021
|
Interim
|
1000
|
100
|
|
09-11-2020
|
Interim
|
150
|
15
|
|
17-08-2020
|
Interim
|
320
|
32
|
|
26-05-2020
|
Final
|
60
|
6
|
Interestingly, the current share price of the dividend yield stands at 5.77 per cent while the stock trades at a market cap to sales of 0.78. Besides, the stock's PE stands at 8.71.