Managing Director Marvin Kline of Logan Capital Management says his firm added Toyota Motor Corp (ADR) (TM) in the second quarter because they found the company had a strong dividend yield and balance sheet.
“Toyota, at the time we brought it, had a 3% yield. They announced that they are buying back stock,” Kline said.
FOR MORE INFORMATION ON THIS INTERVIEW CLICK HERE.
Kline says people may not be aware that Toyota’s balance sheet is comprised of cash and marketable securities. Therefore the company has a lot of asset value in addition to its operating business.
“If you subtract the value of the company’s investments from its market value, it is selling at a very low multiple of earnings,” Kline added. “At the time we bought the stock, Toyota’s stock price had been knocked down because it announced a major recall of 6.4 million vehicles. So at the time of purchase, we found the stock attractive because of the dividend yield, the strong balance sheet and its earnings growth.”
Long-Term Earnings Growth for Nestle SA (ADR) (OTCMKTS:NSRGY) and Danone SA (ADR) (OTCMKTS:DANOY)
May 26, 2016
Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) Shows 15% Growth and 3% Dividend Yield
November 22, 2016
Toyota Motor Corporation (TM) Could Gain Competitive Edge from Abenomics and Yen Depreciation
June 25, 2013
Apple Inc. (AAPL) Offers 2% Dividend Yield as Growth Continues
September 02, 2014
Access Midstream Partners LP (ACMP) Offers Attractive Yield and Growth Profile
April 14, 2014