Haverty Furniture Companies: A Perfect Fit For Conservative Dividend Investors

Summary

• Revenues are falling significantly after a boost in 2021 and 2022 as the housing industry is being impacted by high interest and mortgage rates.
• Despite laudable efforts on the part of the management, inflationary pressures and lower volumes are putting significant pressure on profit margins.
• The balance sheet is very robust and the company is free of debt, which should allow it to overcome the clouds without significant difficulties.
• The regular dividend yield on cost has reached 4.5%, suggesting that the recent share price decline is a good opportunity for any long-term conservative dividend investor.

J. Michael Jones

Investment thesis

After experiencing a demand boost in 2021 and 2022 driven by the reopening the U.S. economy after the worst months of the coronavirus pandemic, a significant number of Haverty Furniture's (NYSE:HVT) customers have

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.