Maynard Paton | [SharePad] Screening For My Next Long-Term Winner: RWS

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27 July 2024
By Maynard Paton

An illustrious dividend history and a worthwhile yield have brought RWS to my attention. The language-translation group presently offers:

• An unbroken record of dividend increases since its 2003 flotation;

• A despondent share price that provides a 6.5% yield;

• Forecasts for further growth, albeit tempered by significant profit adjustments and unnerving management changes, and;

• A long-time board member with a £170 million investment who has never sold a share.

I pinpointed RWS after revisiting a SharePad filter that shortlisted companies where the last five years had shown their dividends going up but their share prices going down:

I selected RWS because its shares had fallen the furthest among the shortlist. I also noted the group’s forecast P/E was a modest 8x.

Not only has RWS’s dividend increased during the last five years, the payout has been lifted every year for a remarkable 19 years!

But the rising dividend has not stopped the shares plummeting to 189p, which supports a £696 million market cap:

Let’s take closer look.

Read my full RWS article for SharePad >>

Maynard Paton