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@kewur 3 months ago

Two Dividend Stocks Are Getting Left Behind Despite Solid Performance

Two Dividend Stocks Are Getting Left Behind Despite Solid Performance

There's a widening gap between high-growth stocks and dividend stocks right now. Zoetis (ZTS), the leading animal health company, has lost about half its value since 2022 after weaker earnings and some underwhelming product launches, but it still boasts strong profits, a 22% ROIC, and a dividend yield at an all-time high, with only a third of profits going to payouts. Nomad Foods (NOMD), Europe’s top frozen foods brand, has dropped 62% since 2021 and trades at record-low valuations, even as management is buying back shares and insiders are buying in. Its new dividend yields 5.7% and is well covered. Both companies look to be potentially undervalued, with steady cash flows and clear long-term demand in their sectors.
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@AntonioMyers 3 months ago

More of a buying opportunity? What do others think about it?

@Simonwhite 3 months ago

Zoetis is done for.