Investors might not be familiar with the company, but it’s been a very reliable investment. Importantly – especially in today’s stock market – its future prospects look good as well.

Infrastructure

Renew is a specialist in infrastructure maintenance. It’s a firm that operators hire to do things like maintain railway tracks, repair water facilities, and upgrade electricity transmission lines.

There are a lot of good things about this industry. One is that investments are mandated by regulators, so companies don’t have much choice about cutting back on their spending.

Likewise, a focus on ongoing repairs means the business doesn’t depend on infrastructure expansion projects. The existing stuff needs to be maintained, regardless of expansion plans.

Barriers to entry are also reasonably high. Water infrastructure repairs aren’t the kind of thing that a local plumber can do – it requires specialist knowledge and expertise.

Durable growth

As a result, Renew is a resilient company that tends to benefit from relatively reliable demand. And that translates into good things from an investment perspective. 

Aside from 2020 – and we all know what happened then – the firm has increased its dividend per share each year over the last decade. And these are not just token increases — they’re 10% a year.

There’s something else though, that’s equally important. That dividend growth hasn’t stopped the underlying business from making investments that have significantly increased its value.

Source: Fiscal.ai

Renew’s dividend has accounted for less than 10% of its free cash flows. And it’s been putting the cash it has retained to good use. 

A series of acquisitions has both strengthened the company’s competitive position and increased its book value. Over the last 10 years, shareholder equity has climbed more than tenfold.

So shareholders who bought the stock a decade ago have not only owned a business that’s distributed cash. It’s also grown impressively.

Outlook

Renew’s resilience is impressive. And that’s valuable in a stock market that’s trying to work out which companies are going to be the casualties in the rise of artificial intelligence (AI).

No company however, is risk-free. There’s a lot about the business that isn’t under the firm’s control and delays to things like rail investments can result in profit warnings.

That’s why the stock fell sharply at the start of 2025. And while it’s recovered a fair bit, I still think it looks like good value at a price-to-earnings (P/E) ratio of 16. 

Ultimately, my view is that this is one of the UK’s most durable businesses. As a result, share price volatility might be an opportunity that’s worth considering.

Under-the-radar

At first sight, Renew looks like a steady operation, but not a spectacular one. But the company’s acquisition strategy means investors shouldn’t overlook its growth credentials.

The stock’s on my list of businesses I’m paying attention to. And while I haven’t bought it yet, I’m giving it some serious consideration at the moment.

The post 1 of the UK’s top dividend stocks at a bargain price appeared first on The Motley Fool UK.

Furthermore, it operates in one of the most defensive industries around. So with the share price 10% off its highs, is now the chance for investors to think about snapping up the stock?

A defensive business

Renew provides maintenance for UK water, rail, and energy infrastructure. This involves things like repairing tunnels, fixing burst pipes, and upgrading power lines.

Demand for this kind of work is pretty regular – in fact, it’s mandated by regulation. As a result, it doesn’t really fall away in a recession or depend on expansion projects.

Barriers to entry are also high. Things like rail and water maintenance require specialist certification and firms have little incentive to move from trusted partners like Renew.

All of this means that demand is likely to be strong in future. Changes in regulation might affect what’s required, but the need to maintain infrastructure isn’t likely to go away. 

Growth strategy

Interestingly, a stable business doesn’t really come at the cost of growth. Revenues have roughly doubled over the last 10 years and earnings per share are up 264%. 

A significant part of this has been the result of acquisitions. By buying other businesses, Renew has developed a presence in various infrastructure markets.

The usual risk with this type of strategy is that there’s an inherent danger of overpaying. But this is something Renew has managed very well. 

Focusing on targets that immediately contribute to earnings means the threat of future impairments is limited. And this is reflected in a very strong balance sheet.

Risks and opportunities

Renew’s recent acquisitions have focused on establishing a presence in the renewable energy industry – specifically, servicing wind turbines. This, however, comes with a degree of risk. 

The outlook for wind energy depends heavily on the UK’s shift towards renewables in general. But high energy bills mean investors probably can’t rule out a change of direction. 

The threat is real, but it’s worth noting that servicing revenues don’t depend on growth in the industry. As long as existing capacity is maintained, demand should stay reasonably strong.

In terms of the firm as a whole, revenues are at record levels and the order book looks very strong. Given this, I think the outlook is very positive for the business.

One to consider

Renew currently trades at a price-to-earnings (P/E) multiple of 14. That’s a multiple that I associate with businesses that are either more cyclical or have more limited growth prospects. 

The company might look like it has these properties, but I don’t think it does. In fact, I see it as the opposite – a resilient operation with significant scope for future growth.

Given this, I’m planning to add it to my portfolio in 2026. It might not get the attention it deserves, but that might be to my advantage as someone looking to buy the stock.

The post Record sales and a low P/E ratio make shares in this UK growth company hard to ignore appeared first on The Motley Fool UK.

Renew Holdings (LSE:RNWH) is a collection of businesses that maintain the UK’s water, electricity, and rail infrastructure. And I think there’s an awful lot to like about the stock.

Infrastructure 

Renew’s operations involve maintaining, replacing, and upgrading, things like rail tracks, transmission lines, and water pipes. And there are a lot of attractions to being in this industry.

The UK’s infrastructure is critical to it functioning. As a result, there’s significant funding committed to the markets the firm operates in and this is protected by regulation. 

On top of this, the projects it engages in require a lot of specialist knowledge and technical expertise. This creates a significant barrier to entry for potential competitors.

Despite this, Renew does have competitors, including Balfour Beatty, Kier Group, and Costain. All of these are significantly larger than Renew, giving them advantages that come with scale.

Renew however, differentiates itself by focusing on maintenance instead of new builds. As a result, it has deep expertise in the distinctive requirements associated with ongoing repairs.

The firm has a decentralised structure, with subsidiaries specialising in different areas, from repairing bridges to fixing pipes. And focusing on specific niches has generated great results.

Growth and dividends

Renew shares currently come with a dividend yield of around 2.75%. But the company only distributes around a third of the free cash it generates. The rest is reinvested into the business to fund growth. And a good amount of this has involved acquiring smaller companies over the last 10 years. 

This can be risky, but it has generated impressive results for Renew. Revenues have almost doubled in the last decade and earnings per share have gone from 9p to 53p.

Importantly, the company’s managed to maintain strong returns on equity over this period. That’s a good sign the firm’s doing a good job of generating growth with the cash it retains.

The stock’s down 25% since the start of the year and the big reason is the January trading update. Renew (without irony) reported that rail improvement works were subject to delays.

The firm reiterated though, that its customers remain committed to record levels of investment in rail infrastructure. That makes the drop in the stock look like an opportunity to me.

A stock to consider buying

Until recently, Renew Holdings wasn’t on my radar at all. But while it doesn’t operate in a particularly high-octane industry, I think it looks very attractive as a business.

Maintaining the UK’s infrastructure is non-optional and spending is committed by regulation and this should give the company plenty of opportunities for future growth. Renew has grown impressively over the last 10 years and I don’t see a big change on the horizon.

So I’m getting ready to take a closer look at this stock.

The post Down 25% since January, this resilient dividend stock’s catching my eye appeared first on The Motley Fool UK.

Looking for some small-cap shares to buy for 2024 and beyond? Here are three to consider.

A play on data and AI

First up is Volex (LSE: VLX). It’s a UK manufacturing company that specialises in power and connectivity products.

One reason I’m bullish on Volex right now is that the company makes high performance cables for the data centre market. And, thanks to the explosive growth of data – and new technologies such as artificial intelligence (AI) – this market is absolutely booming right now.

This was reflected in the group’s recent half-year results. For the 26 weeks to 1 October 2023, revenue in its Complex Industrial Technology division was up 30% year on year to $100.6m.

Another reason is that the company serves the electric vehicle (EV) market (it recently signed a deal with Tesla). This market has enormous growth potential.

Of course, manufacturing is a cyclical industry. So, economic weakness is a risk.

However, at present, Volex shares trade on a forward-looking price-to-earnings (P/E) ratio of just 11. And at that earnings multiple, I think the risk/reward setup is very attractive.

Benefitting from green infrastructure investment

Next we have Renew Holdings (LSE: RNWH). It’s an under-the-radar company that provides engineering services to maintain and renew critical infrastructure networks and is benefitting from green infrastructure investment.

Renew has a lot of momentum right now. For the six-month period to the end of September, group revenue was up 13% year on year while operating profit was up 18%.

And looking ahead, management was confident about the future.

“We remain excited about the significant growth opportunities across the Group, underpinned by the increasing national demand for the maintenance and renewal of existing UK infrastructure, which will continue to be a domestic priority regardless of the outcome of the next election“, said CEO Paul Scott.

This is another small-cap stock with a low valuation. Currently, the forward-looking P/E ratio is just 13. I see a lot of potential at that multiple.

That said, an economic deterioration in the UK is a risk.

An online shopping play

Finally, we have dotDigital (LSE: DOTD). It’s a software company that specialises in solutions for digital marketing and is benefitting from the growth of e-commerce.

This is a company with an excellent long-term growth track record. And looking ahead, analysts expect it to continue growing.

For the year ending 30 June 2024, for example, revenue is expected to come in at £78.6m, an increase of about 14% year on year.

The valuation is very reasonable, however. At present, dotDigital has a P/E ratio of just 23. That’s not high for a software company with recurring revenues.

It’s worth noting that dotDigital recently acquired digital marketing company Fresh Relevance for £25m. Big acquisitions like this don’t always work out.

I think the deal makes sense, however, as the two companies operate in the same space.

Overall, I see a lot of potential here as we start 2024.

The post 3 small-cap UK growth stocks that could deliver big returns in 2024 appeared first on The Motley Fool UK.

A word of warning – AIM is more lightly regulated than the main market and also contains some high-risk speculative stocks. Careful research is needed to find the hidden gems, but I’ve found it’s worth the effort. Here are seven AIM market stocks that I’d consider buying for my portfolio today.

Safer profits from property

My first choice is AIM property developer Watkin Jones (LSE: WJG). This company specialises in building student accommodation and apartment blocks, which it then sells to big rental landlords. New buildings are often pre-sold before they’re built, so the risk of losing money on completed projects is low.

The main fear I have is that this business could face much tougher competition in the future. Purpose-built rental accommodation is a growing market with some big money behind it. But Watkin Jones is an established player with a good reputation. I think it should continue to do well.

The shares have slumped recently, and this stock now offers one of the higher dividend yields on the AIM market, at around 3.9%. I think Watkin Jones looks good value at current levels.

A potential bargain

My second pick is tableware and home fragrance group Portmeirion (LSE: PMP). This business grew out of a gift shop in North Wales, but today owns brands including Spode, Royal Worcester and Wax Lyrical.

One potential concern for me is that if it continues to buy up other businesses, Portmeirion could lose focus on its core pottery business. This still generates the majority of profits.

However, Portmeirion’s latest results suggest to me that this isn’t a problem yet. The group’s 2021 profits were only slightly below 2019 levels and City analysts expect profits to hit record highs this year.

The shares currently trade on just eight times earnings and offer a 4% dividend yield. I’m tempted to buy at current levels.

Promising newcomer

Franchise Brands (LSE: FRAN) only floated on AIM in 2016 but is growing fast and looks promising to me. This group owns a range of franchised businesses, including drain specialist Metro Rod.

Management recent expanded into the US with the acquisition of Filta, which provides commercial kitchen maintenance services through a franchise network in the UK and US.

Franchise Brands’ shares aren’t cheap, on 21 times 2022 forecast earnings. If growth slows, then the shares could fall sharply. But progress so far has been good, in my view.

Annual profit has risen from under £2m in 2017 to more than £5m last year. Franchise Brands is one AIM growth stock I’d consider buying for my portfolio.

Nuclear specialist

I normally avoid buying shares in building contractors. But I think that Renew Holdings is a bit different. This business specialises in essential infrastructure such as rail, water and nuclear energy.

Most of these areas are heavily regulated. Unlike housing and commercial property, they do not usually suffer from cyclical booms and busts. I’m particularly interested in the exposure to nuclear energy, which I think could be a growth area as the UK moves away from coal and gas.

Renew has delivered steady growth in recent years, with profits rising from £12m in 2017 to more than £30m last year. So far, management has been able to manage material shortages and rising costs without any impact on trading, we’re told.

If these problems continue, I think it might become more difficult for the company to manage them. That could cause profits to fall below expectations.

However, I’d see this as a short-term issue that would affect many competitors equally, so I’m not too worried. For now, I think Renew Holdings looks an interesting opportunity for continued growth.

A cash-backed 6% yield

Bank note authentication and brand protection specialist Spectra Systems has one of the highest dividend yields on AIM, at 6.4%.

This tempting payout looks fairly safe, in my view. Spectra has no debt and generates plenty of cash each year, thanks to its 35% operating profit margin. I think the main reason these shares don’t trade much higher is that the company’s growth rate has been fairly slow in recent years.

Investors worry that demand for bank notes and Spectra’s services could fall in future years. But there’s no sign of that this year and I think new products such as a machine-readable plastic banknote material could support long-term demand.

This is a niche business, but as an income investor I’m tempted to add a few to my portfolio.

Pharma growth

Healthcare is one of the long-term growth themes in my portfolio. One less well-known company in this sector is Alliance Pharma (LSE: APH).

Alliance specialises in buying mature consumer healthcare products and improving their distribution and marketing. The firm’s share price has doubled over the last five years.

This business may not sound that exciting, but profit margins have averaged over 20% since 2016 and sales have nearly doubled over this period.

I think management is a key risk here – misjudged future acquisitions could hit profits and damage the group’s growth record.

For now, though, I remain bullish about this company. I’d be happy to tuck a few shares away for the next five years.

25% growth forecast at this stock

My final pick is currency exchange specialist Argentex (LSE: AGFX). This small-cap specialises in providing foreign exchange services to corporate and private clients.

The business is led by founder and CEO Harry Adams, who has a 12% shareholding in the business. I reckon this should mean his interests are well-aligned with those of shareholders.

Perhaps the biggest risk I can see is that this is a fast-growing, competitive market. Will Argentex end up as a long-term winner or an also-ran?

I don’t know, but broker forecasts suggest it could report 25% earnings growth this year. Based on these estimates, I think the shares look very cheap on eight times forecast earnings. This AIM stock is on my list as a potential buy.

The post 7 top AIM market shares to buy now appeared first on The Motley Fool UK.

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Top Stocks and Shares ISA buy 

The growth stock I would buy for my portfolio is Renew Holdings (LSE: RNWH).

This company provides engineering services, and helps maintain critical UK infrastructure assets. Key focuses are the rail and energy markets including the nuclear industry. 

This level of specialism gives the outfit a competitive advantage. It also is set to benefit from increased infrastructure spending over the next couple of years.

The government has outlined plans to spend tens of billions of pounds over the rest of the parliament on infrastructure projects. Rail and road projects will lead the charge. There is also a significant amount of cash flowing into new nuclear projects. 

Unfortunately, this tailwind does not guarantee the company’s growth. It faces significant challenges such as rising wages and materials costs. These could hit profit margins, which tend to be razor-thin in the construction industry. If there is a sudden deterioration in the economic outlook, the organisation may also see a higher number of loan defaults from customers. 

Even after taking these challenges into account, I think the outlook for the growth stock is incredibly encouraging. According to its latest trading update, the company’s order backlog at the end of 2021 totalled £742m, up from £677m in the same period last year. That is equivalent to around one year of revenues. 

Growth stock 

As the UK economy continues to recover from the pandemic, I expect demand for the corporation’s services will rise. 

City analysts expect the company to report earnings growth of around 11% for 2022. This puts the stock on a forward price-to-earnings (P/E) multiple of 13.8. It also offers a dividend yield of 2.3%. 

Considering this income and the company’s growth potential over the next couple of years, I think it would make a great addition to my Stocks and Shares ISA.

There could also be the potential for merger and acquisitions activity.

Rising costs could force engineering and construction businesses together to lower costs and try and improve economies of scale. Considering Renew’s niche market position, I think the firm could make an attractive acquisition target, although this is just speculation on my part. 

The post My top growth stock for a Stocks and Shares ISA appeared first on The Motley Fool UK.

With that in mind, here are three stocks I’d buy for my portfolio today to play this theme.

UK shares to buy today

I’d buy Restaurant Group (LSE: RTN), which operates casual dining restaurants throughout the UK. Its flagship brand was Frankie & Benny’s, but Wagamama replaced this when the group acquired the latter in 2018. 

With many of its restaurants closed over the past 12 months, its sales have been decimated. They slumped around 60% in 2020. However, as the UK economy reopens, I think this stock could be a great recovery play. Analysts expect the group to return to profit in 2022. However, these are just projections at this stage, and the firm isn’t guaranteed to match the forecasts. 

Still, I think this is one of the best UK shares to buy today for its recovery potential. The main risk facing the enterprise is the prospect of another lockdown due to a third coronavirus wave. It also has a lot of debt, and this could restrict recovery in the years ahead. Even after taking these risks into account, I’d buy the stock for my portfolio. 

Booming business

Another hospitality business I’d buy for my portfolio is Marston’s (LSE: MARS). I think this is one of the best UK shares to buy today, based on its recovery potential.

The group’s losses totalled a staggering £360m in 2020, and analysts are forecasting losses of £44m for 2021. But profit could return in 2022, according to forecasts.

Based on the scenes we’ve seen of packed pub gardens over the past week, I think these forecasts could be too conservative. 

That said, Marston’s recovery is far from guaranteed. It’s exposed to the same risks as Restaurant Group. Another coronavirus wave could force the government to shut restaurants and bars again. This would send the business back to square one. And after generating a loss of £360m in 2020, there’s no guarantee the company could survive another lockdown. 

Even after taking this risk into account, I’d still buy the stock for my portfolio of recovery shares today. 

Engineering growth

I believe one of the best UK shares to buy today in the engineering sector is Renew Holdings (LSE: RNWH). The engineering and specialist building contractor expects only a modest decline in earnings next year. Over the next two years, analysts forecast an explosive return to growth with net income rising to an estimated £38m by 2022. The firm earned £22m in 2019. 

These are just projections at this stage, but I believe they show Renew’s potential to capitalise on the economic recovery. To help complement growth, Renew recently acquired water-focused engineering business J Browne Group Holdings for £29.5m. 

The main risk facing the business is the prospect of another economic slump. Engineering is a highly cyclical sector and a sudden economic downturn could inflict hefty losses on Renew. A poor acquisition may also have a similar negative impact on the business.

Despite these challenges, I’d buy the engineering company for my portfolio of UK recovery stocks. 

The post UK shares to buy today: 3 stocks I’d acquire appeared first on The Motley Fool UK.

I have found a bunch of shares that all have impressive track records of growth in earnings and hefty returns in investment. The coronavirus market crash knocked their prices down or stalled their ascents. All are cheap, trading at under 15 times earnings per share. I particularly like the look of two. They are Renew Holdings (LSE: RNWH) and HgCapital Trust (LSE: HGT), and I think they are some of the best UK growth shares to buy today.

Best UK growth share?

Renew Holdings provides engineering support services in the regulated UK rail, infrastructure, energy, and environmental markets. It also has a sideline (about 10% of sales) in high-quality residential and science building. Renew’s revenues tend to be stable as they are underpinned by long-term and regulated budgets.

These factors did not stop investors fleeing the stock during the coronavirus market crash; Renew’s share price was down 45% at one point. To shore up the balance sheet in the crisis, the dividend was cut, which also contributed to investors fleeing the stock. The share price has recovered, but even now sits at least 20% below its pre-crash highs. This makes the stock cheap, trading at just 14.66 times trailing 12-month earnings per share.

Renew Holdings has grown its earnings per share by an impressive 47.16% over the last 10 years and has averaged a return on investment (ROI) of 25.17% over the last five years. During the worst of the coronavirus lockdown, 80% of Renew’s activities continued because the work was deemed essential. As the economy picks up the remainder should return. There has also been an acquisition of a specialist road-engineering firm. This gets Renew exposure to road infrastructure along with its existing exposure to the UK government’s £640bn infrastructure package.

I think Renew is one of the best UK growth shares to buy today. There are plenty of reasons to think it will continue its robust earnings growth after the pandemic passes. That growth is available on the cheap today.

Growth in private

Mention unlisted companies and one might think of start-ups and high risk, but HgCapital is not a venture capital outfit, although it does invest in private companies. HgCapital’s portfolio contains approximately 30 fairly mature companies in the software and services business. HgCapital trades on the London Stock Exchange but provides investors with exposure to private equity. Private equity exposure should be diversifying for a public equity portfolio (which many Fool UK readers will have) and private equity returns (although murky) have tended to outperform those of public equity. Another reason I believe HgCapital is one of the best UK growth shares to buy right now is that its portfolio is not significantly exposed to those sectors hit hardest by the coronavirus.

Underlying portfolio earnings have grown by 30% over the last 10 years, and the five-year average ROI is 16.7%. An experienced management team and exposure to high-growth sectors should see that performance continue. Right now, HgCapital stock offers growth at a reasonable price, and it traditionally pays a dividend.

The post I think these are some of the best cheap UK growth shares to buy today appeared first on The Motley Fool UK.

However, today’s release of the half-year results report has caused the stock to explode higher still. It’s up around 15%, as I write. The great thing is, I’m finding many shares staging fast recoveries right now. And each one is backed by a resilient business trading well through the crisis, or benefitting from the crisis, or both.

Good prospects

It seems Renew could be in the ‘both’ category. It’s trading well now and has operations poised to recover even more. There’s also the potential to win more business because of government policy going forward.

Chairman David Forbes explained in the report that the strong first-half performance reflects the “reliable long-term nature of the UK infrastructure markets.” And, tantalisingly, he said the firm’s strategy in the sector is “reinforced in the Government’s latest Budget when they committed to investing £640bn in infrastructure over the next five years.”

I’ve been bullish on the infrastructure sector for some time. So it’s pleasing for me to see Renew is so embedded in the industry. Forbes reckons the company has been able to carry on with around 80% of its operations after taking the necessary precautions for Covid-19.

Now, the directors are looking for opportunities to get the remaining 20% of operations back up and running following the UK government’s recovery strategy launched on 10 May.

Meanwhile, the first-half figures to 31 March look good. Revenue rose by just over 4% compared to the equivalent period the year before. Adjusted earnings per share also moved just under 5% higher. The directors had previously announced the suspension of the interim dividend, in line with many other firms during the crisis.

Long-term opportunities

Forbes reckons Renew’s position in its markets is strong because of the “essential” nature of the work undertaken. The company is “well placed” to play a significant role in the long-term opportunities that will emerge across UK infrastructure, “a sector that will play an important role in rebuilding our economy.”

I reckon the infrastructure sector is a decent place to invest right now. Share prices are looking perky for many firms involved in the industry. But I’m also seeing strong stock recoveries and improving prospects for companies in sectors such as Healthcare, IT, Software, Betting and Gaming, Fast-Moving Consumer Staples, and others.

Indeed, there are some fertile hunting grounds out there. But there are also some dangerous swamps into which I wouldn’t venture right now. For example, I’d follow Warren Buffett and avoid airline shares. And I’m not keen on risking my hard-earned trying to pick firms that will be survivors in the hospitality sector, such as pubs, restaurants, and hotels.

The post Up 15% today! This share’s explosive recovery continues along with others like it appeared first on The Motley Fool UK.

Now, though, the stock could offer significant recovery potential. Alongside another cheap share which released news on Wednesday, it could be worth buying for the long term, in my opinion.

Improving outlook

The company in question is engineering services group Renew (LSE: RNWH). It released an update showing first quarter trading in line with expectations. Its order book as at 31 December 2018 was £570m, which is up on the £511m recorded a year ago. The company has been able to secure all of the Network Rail Control Period 6 Infrastructure Projects Frameworks that it has tendered for.

Looking ahead, the stock is expected to post a rise in earnings of 12% in the current year. This suggests its strategy is working well, and may help to catalyse investor sentiment.

With Renew trading on a price-to-earnings (P/E) ratio of 9.5, it appears to offer good value for money. A dividend yield of 3% may not suggest it offers dividend investing appeal. However, with dividends being covered 3.5 times by profit, and having doubled in the last four years, the company’s dividend growth potential appears to be impressive.

Low valuation

As mentioned, Standard Life Aberdeen’s share price has declined significantly in recent months. Investors have become increasingly concerned about the outlook for the world economy. Risks, such as a slowing growth in China, the impact of a rising US interest on emerging markets and Brexit, could mean the short-term prospects for FTSE 100 shares remain subdued.

However, with stock markets naturally moving in cycles, the company’s share price decline could present a buying opportunity. It trades on a P/E ratio of around 11, which indicates that it offers good value for money compared to some of its financial services industry peers. And with net profit due to rise by 9% in the current year, investors may be anticipating trading conditions that are worse than they actually prove to be.

With a dividend yield of 8.8%, Standard Life Aberdeen naturally appeals to income investors. Dividend growth may be substantially lower than profit growth, though, since the company’s shareholder payouts are covered just 1.05 times by profit. As such, dividend growth may be somewhat lacking.

Despite this, a low valuation, high yield, and growth potential could mean the stock is able to generate impressive total returns in the long run. As such, now could be the perfect time to buy after its recent poor share price performance.

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