No or low debt allows a company to allocate capital without endless thinking about the direction of interest rates.
No or low debt allows a company to allocate capital without endless thinking about the direction of interest rates. Since no money is owed, there is no monthly payment to lenders, a feature of the concept that many find pleasing. Those in charge can spend funds on projects without that kind of worry.
Shareholders like the idea as well – at least, those shareholders who understand how debt can hinder growth and constrain innovative thinking. Stocks of 4 such companies that pay a dividend of greater than 3% are listed here. There’s more to investment research than debt and dividends but it can be a decent start.No or low debt stocks with 3+% dividends
Autohome ADR
Autohome, based in Beijing, calls itself “the leading online destination for automobile consumers in China.” This New York Stock Exchange-traded ADR has a price-earnings ratio of 17 and trades at just 1.04 times its book value. This year’s earnings are up 2.68%. The EPS over the past three years is down 11.37%.
The company has no debt, long-term or otherwise and pays a 5.
