ROYMF - Royal Mail's Dividend Yield Is 13% But I Still Wouldn't Invest
A reader asked me to review Royal Mail (ROYMF), (ROYMY), as a dividend investment, based partly on the company's 13% dividend yield and the fact that he couldn't believe how low the share price was given the volume of letters and parcels passing through his mail centre.
I'm an obliging sort of chap and so, as requested, here is that review.
Here's a summary of what I found:
- The market for addressed letters is declining while the market for parcels is growing.
- Royal Mail isn't growing and profitability is below average.
- Unions have a lot