In This Article:
As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of NEXT plc (LON:NXT), it is a notable dividend payer that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on NEXT here.
Excellent balance sheet average dividend payer
NXT is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. NXT’s has produced operating cash levels of 0.56x total debt over the past year, which implies that NXT’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Income investors would also be happy to know that NXT is a great dividend company, with a current yield standing at 2.9%. NXT has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For NEXT, I’ve put together three pertinent factors you should further examine:
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Future Outlook: What are well-informed industry analysts predicting for NXT’s future growth? Take a look at our free research report of analyst consensus for NXT’s outlook.
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Historical Performance: What has NXT’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NXT? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.