- 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.
For further details see:
Verso: A Good Dividend Growth Opportunity