Recent Buy: Invesco Ltd. (IVZ)

ID-100426334 Recent Buy: Invesco Ltd. (IVZ)I added more shares with the purchase of Invesco Ltd. (IVZ)

91 shares @ $15.44 on 8/14/2019.

This increases my forward 12-month dividend income by $112.84 to a total of $9,075.12. I also updated my portfolio page to reflect the change.

 

 

 

My Thoughts

This is my second buy of this company. Invesco currently sports a PE of 10.8 which is already low when comparing to the company 5-year PE average of 14.8. The best part is that its forward PE is 6.4. Based on this only tells me that the company is half what it should normally be worth. The next thing I like to look at is its dividend yield. Invesco dividend yield is 7.92% at today’s price. The 5-year dividend yield average is 3.9%.

So not only is the PE more than half of where it should be, but the dividend yield is also half of where it normally is. All signs look good that the stock is undervalued.

If the company has such a high dividend yield, then the dividend payout should be high as well? Wrong.

Invesco dividend payout is 50% based on 2019 expected adjusted earnings of $2.47. If you are looking at Free Cash Flow, then the dividend payout ratio is even better at 43%.

The only downside I see with the dividend is its growth. The most recent dividend increase was 3.3% which came in in April. The company has a 5-year dividend growth rate of 7.02%. They have been increasing the dividend for 10 straight years.

Even though the dividend increases have slowed down, the current dividend yield makes up for it big time.

I find IVZ to be undervalued, and I recommend it as a BUY at this time. I have a fair value price at $24.82. This means that IVZ is 58% Undervalued based on today’s price of $15.71 (8/19/2019).

Screen-Shot-2019-08-19-at-7.46.36-PM-1024x769 Recent Buy: Invesco Ltd. (IVZ)

Source: Fastgraphs.com

 

What do you think about the company? Plan on owning it or already do? or why not?

Thanks for reading, and don’t forget to connect with me through Facebook and Twitter to see my latest buys.

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Comments

  1. Hello Felix. I have been a dividend investor for 20 years. I was going through my emails and I saw your purchase. I did the same exact thing and purchased 250 shares of IVZ at $15.21. I also thought it was undervalued plus the low payout ratio. Good choice! Thanks for sharing your posts. Joseph

    • Hi Joseph, wow 20 years of investing that’s amazing. Great work! Thanks for reading my post. Yea, ivz is very much undervalued. Loving the dividend yield and very low valuation. Thanks again for stopping by. Have a great day!

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