Q: Hi,
I've held WCP for several years and, while the divvy is nice, I'm looking for more growth than what it has shown me.
Or am I looking at this stock wrong? Is it really an income play?
Thanks,
Robert
I've held WCP for several years and, while the divvy is nice, I'm looking for more growth than what it has shown me.
Or am I looking at this stock wrong? Is it really an income play?
Thanks,
Robert
5i Research Answer:
It is a sector, income AND cyclical play. WCP is up 26% in the past year, and more with the dividend, and we would be quite happy with that. It is cheap at 8X earnings and the dividend has shown good growth. If an investor does want sector exposure, we would be quite comfortable holding it. Of course, other sectors can grow faster, with less cyclicality, but they come at much higher valuations and typically with far less yield.