2024-03-28 07:30:00 ET
Summary
- Dividend growers and initiators have historically generated strong total returns.
- Paycom’s 2024 guidance came in below the analyst consensus, but the growth story looks to remain intact.
- The company ended 2023 with no long-term debt and a solid cash and cash equivalents balance.
- PAYC's shares could be meaningfully undervalued from the current share price.
- The human capital management company could be poised to more than 4x the S&P 500 in the years ahead.
Those who have followed me on Seeking Alpha know that my most favored and predominant investing strategy is dividend growth investing. This is because I am a big believer in the keep-it-simple stupid mantra of Berkshire Hathaway's ( BRK.A ) ( BRK.B ) long-time Chairman and CEO, Warren Buffett.
Dividend growth investing helps me to focus my attention on the fundamentals of my investment holdings. Rather than being distracted by the day-to-day market noise, this helps me to focus on the long-term profits and dividends that my portfolio generates and distributes to me. That makes it much easier for me to hold onto/add to my winners over time and let the market do the heavy lifting for me via compounding....
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For further details see:
Paycom: An Investment With Dividend Growth Potential