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James Halstead (LSE: JHD) It is not the most famous or widely covered action of the market. But it has an excellent history when it comes to dividends and is quoted at a minimum of 52 weeks.
The company manufactures and distributes industrial floors. And although things are difficult in the industry at this time, this could be the time to consider buying actions in a quality business.
Industrial floor
The industrial floor does not seem particularly exciting. And compared to many things, or in fact, almost all other things, it is not, but this can be something good when it comes to dividends.
Sometimes, companies that are not particularly high octane can be lasting and resistant investments. And that has been the case with James Halstead.
The company Polyflor Brand establishes the standard on the industrial floor. Their products are known for their high levels of sliding resistance, durability and the ability to resist regular cleaning.
In some cases, such as hospitals, these characteristics are even specified by regulation. This creates an entry barrier for competitors and helps James Halstead maintain their leading market position.
Why have you been fighting the action?
Despite some clear strengths, the price of James Halstead's shares has been fighting in 2025. And the reason for this is that sales have been unusually weak.
In its January commercial update, the company reported a decrease in income compared to the previous year. Management attributed this to the weak client confidence in a difficult environment.
Despite this, the company offered an encouraging orientation for investors. He identified an accumulation of repairs and renovations in medical care and education as strong signs for future growth.
I think that gives some reason for optimism in the future. Specifically, he suggests that the challenges faced by James Halstead are cyclical, instead of permanent.
Long -term investment
From a long -term perspective, I am not worried about the current environment; In fact, I see it as a possible purchase opportunity. But there is something more than I am in mind.
In the last 10 years, James Halstead has distributed approximately 75% of his net income. Given this, the fact that it has increased its dividend by around 60% is quite impressive.
However, there is something that I think is worth watching. Since 2015, the return of equity (ROE) generated by the company has constantly decreased from 33% to 23%.
This is a sign that the company has failed to be so efficient with the cash that has retained as it was a decade ago. And that is something that investors must monitor.
An action to consider buying
In my opinion, James Halstead is a quality business that does not receive the attention it deserves. And that is a good combination from an investment perspective.
From what I can see, only an analyst covers the shares and has a price objective 117% above the current level. I am not sure to go so far, but I definitely think it looks attractive.
The dividend yield is approaching 6% and that is unusually low for this stock. With that in mind, I think that passive income investors should seriously buy it at today's prices.
(Tagstotranslate) category. Dividend-Shares (T) category. Investiging
