Q: Hello,
I like to ask for a overview of this company and would it be good addition to a
dividend portfolio? is there any major headwind, especially with the growing trend of deglobalization?
I like to ask for a overview of this company and would it be good addition to a
dividend portfolio? is there any major headwind, especially with the growing trend of deglobalization?
5i Research Answer:
De-globalization is an issue, as WTE's port facility is a major route to Asia. But we think on-shoring is mostly for industrial companies, and we are not particularly concerned about commodity shipment declining in volume. WTE has a nice advantage in location, but it should be considered an income, not a growth, stock. Yield is 6.5% and may vary. It has paid three special dividends in the last four years as well (totalling $2.35 per share). The balance sheet is OK but growth is low. EPS for 2025 is expected to be $1.56, slightly less than it was in 2016. We would consider it 'ok' but not really exciting. But for income investors willing to hold a smaller, somewhat cyclical company, we think it would be suitable.