Electrolux: The Very Robust Balance Sheet Allows For A Dividend Hike

Summary

  • Electrolux reported a fine set of results in H1 2021 and remains very cheap despite the strong share price movements.
  • Trading at about 5.5X EBITDA and having a squeaky clean balance sheet, Electrolux serves as a cheap call option on the household appliances sector.
  • The company has recently hiked its dividend payout ratio from 30% to 50% and has pledged to continue to buy back stock.
  • Looking for a helping hand in the market? Members of European Small-Cap Ideas get exclusive ideas and guidance to navigate any climate. Learn More »
GE Appliances Sold To Electrolux Of Sweden For 3.3 Billion
Scott Olson/Getty Images News

Introduction

Electrolux (OTCPK:ELUXF) (OTCPK:ELUXY) is a Swedish company involved in the production of household appliances under its Electrolux and AEG brands. As you can imagine, the demand for its products nosedived during the first few months of the COVID

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This article was written by

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The Investment Doctor is a financial writer, highlighting European small-caps with a 5-7 year investment horizon. He strongly believes a portfolio should consist of a mixture of dividend and growth stocks.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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