National Presto Industries (NYSE:NPK) is a small cap conglomerate which routinely pays a high dividend. NPK has three distinguishable business segments: the housewares segment which makes small kitchen appliances under its Presto brand; the defense segment which manufactures ammunition mainly for the US Army; and the absorbent products business which makes private label adult incontinence products. Facing headwinds from defense budget cuts and the loss of a major customer in its absorbent products business, its share price dropped 30% in 2012 and has stayed range bound for much of 2013. At current price, shares are roughly fairly valued. Still, long-term investors can expect an annual total return around 11%, mostly from dividend payments.
NPK was analyzed and...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|