Why Highcroft Investments Plc (LON:HCFT) Could Have A Place In Your Portfolio

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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 Highcroft Investments Plc (LON:HCFT), it is a highly-regarded dividend payer that has been a rockstar for income investors, currently trading at an attractive share price. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Highcroft Investments here.

Established dividend payer and good value

HCFT's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of HCFT's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, HCFT's share price is trading below the group's average. This further reaffirms that HCFT is potentially undervalued.

LSE:HCFT Intrinsic value, June 26th 2019
LSE:HCFT Intrinsic value, June 26th 2019

HCFT’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 5.7%.

LSE:HCFT Historical Dividend Yield, June 26th 2019
LSE:HCFT Historical Dividend Yield, June 26th 2019

Next Steps:

For Highcroft Investments, I've compiled three important aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for HCFT’s future growth? Take a look at our free research report of analyst consensus for HCFT’s outlook.

  2. Historical Performance: What has HCFT'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.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HCFT? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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