WRK - Verso: A Good Dividend Growth Opportunity

• The coronavirus pandemic crisis has hit the company's sales very hard.
• The company is debt-free, and the dividend payout ratio will likely be very low after the coronavirus pandemic crisis. The third-quarter dividend cash payout ratio was just ~32% in 2020.
• Currently, an aggressive cost reduction strategy should increase cash flow by improving margins throughout 2021, although the company already became profitable again during the third quarter.
• The initial yield on cost is 3.22%, but a very low payout ratio will allow huge increases in the future.
• The stock offers a good dividend growth opportunity.

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