The Dividend Stock Outperforming Your Favorite Tech Stocks
"Recent Pullback Is A Gift For Long-Term Income Investors"
As you know by my name, I love dividends. And in addition to sharing on here, I write regularly on the investment platform- Seeking Alpha.
My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age.
I want to help you take control of your life, have F.I.R.E.
Here at Dividend Collection Agency the goal is to give investors and/or readers a different perspective. We take a simple approach to building wealth. And although investing may seem easy, people often miss opportunities by over complicating it. But we are here to help.
First off, if you’re reading this I’d like to say Happy Thanksgiving. 🍗
If you’re an investor looking for a potential hidden gem 💎 , then Build-A-Bear (BBW) should be on your radar.
While BBW is not likely a stock that comes to the forefront of investor’s minds, the stock has all the makings of a quality, long-term holding. They also pay a dividend and have been outperforming some of your favorite stocks.
Current Price: $52.06
Portfolio Purpose: Income 💰 & Growth 📈
Why BBW Is On My Buy List
Hit a 52-week high near $76, now pulled back to ~$52
🎁 Long-term investors: this is a gift.Earnings beat + Raised full-year guidance
Year-Over-Year Growth
EPS: +46.9%
Revenue: +11.1%
Gross Margin: +300 bps → 57.6%
Driven by +3% domestic traffic (while the national benchmark fell 3%)
Expansion & Shareholder Strength 🏬
Increased new stores from 50 → 60
Entered 2 new countries
Debt-free balance sheet
Aggressive buybacks
$13.1M bought YTD
$80M still authorized
👀 Expect repurchases to ramp up at these lower prices
Dividend Growth Potential 💰
Dividend initiated last year
Well covered by cash flows
As earnings expand → dividend compounding machine in the making
Valuation Upside ⬆️
Fair value: 15x earnings
Price today: ~$52
Target: $66.15
➡️ Strong upside over the next 12–24 months
And Build-A-Bear has outperformed many your favorite tech stocks like NVIDIA (NVDA), Microsoft (MSFT), Tesla (TSLA) and evenVanguard’s S&P 500 ETF (VOO) in the past year.
⚠️ Near-Term Risk
Traffic may slow next quarter
Labor market weakness could pressure consumers
Investor Takeaway 🔵
BBW is a high-quality dividend stock on sale. I would use price dips as buying opportunities as I believe Build-A-Bear 🧸 should see strong upside ahead.
What do you think?
Happy Investing!
If you’re looking to start investing check out our investment group over on Seeking Alpha 20% off for Black Friday. Click the Seeking Alpha link here. Click investing group, learn more, or the blue hyperlink in my bio.
This is not financial advice. This is for educational purposes only. Please do your own due diligence.
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