Decisive Dividend After Recent Drop

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What do you think of Decisive Dividend for long-term total return after its drop over the past few or so?

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Asked on May 14, 2024 3:17 am
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The company reported some really soft earnings relative to analyst expectations. This isn't a company I've followed extensively, but when I look to its most recent quarter, it missed revenue expectations by 17%, earnings by 90%~, and EBITDA by 36%.

It looks like a softening economy is impacting a lot of its business segments.

I'm not a huge fan of these wide niched conglomerates. The company does everything from wood stoves to golf turf. It's a bit complicated to keep track of and when I look to acquisition heavy companies, I tend to like the ones that hyper focus on a niche. For example, Constellation focusing on VMS companies, Well Health focusing on healthcare etc.

At this point, it looks reasonably cheap and the dividend is well covered. But I think the company will need rates to come down and economic activity to pick up for some of its segments to see a resurgence in activity.

I typically don't put much weight in analyst estimates, but this large scale miss leads me to believe the company could report some soft earnings moving forward as well.

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Posted by Dan Kent
Answered on May 14, 2024 8:09 am