|Ticker||Name||Current Dividend Yield||5 year Dividend Growth||1 year Dividend Growth|
Clearly, RSH isn’t that easy to judge. It had paid out a quarterly dividend until 2001, then changed it to a yearly dividend which did increase a few times until it reached $0.50 last year. Then earlier this year, RSH resumed a quarterly frequency paying out the same amount but on a more frequent basis. That is certainly a good thing but it’s not exactly a stable or predictable pattern either. Overall, the dividend remains very strong and if it could remain at that level, RSH would become fairly attractive for some investors.
|Ticker||Name||Sales Growth (1 year)||Sales Growth (5 year)||Earnings growth||P/E ratio||Margins growth||Payout ratio||Return on Equity||Debt to Capital Ratio|
|Ticker||Name||Trend Analysis||Price||Trading Volume|
No doubt about it, RSH is quickly losing its momentum…
Industry MetricsIt’s fairly obvious that while RadioShack operates in a fairly solid industry (retail consumer electronics), it also faces very stiff competition from similar players (Best Buy, etc), general retail stores (Walmart, etc) but also the online players like Amazon (AMZN). That has certainly squeezed margins for most players making life miserable for those that do not have a competitive advantage. RSH has smaller stores that are not equipped to compete with its powerful competition. It’s a good industry to be involved in but only for the few players that are able to compete.
Fit Within Your PortfolioI don’t think there is any doubt that RSH would not fit in a long term sustaianble dividend portfolio. Its business outlook remains very uncertain. There might be some higher yield dividend portfolios that could use it but even that seems to be a bad idea. The stock was recently rated a sell with a $2.68 price taget by RW Pressprich and Oppenheimer issued warnings that the company will likely cut or even eliminate its dividend in the coming months. That is exactly the type of stock you would want to stay far away from.
I’d be curious, do any of you see value in RSH?