Why Limoneira Company (NASDAQ:LMNR) Could Have A Place In Your Portfolio

Limoneira Company (NASDAQ:LMNR) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of LMNR, it is a company with a great history of dividend payments as well as a excellent future outlook. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Limoneira here.

Reasonable growth potential average dividend payer

One reason why investors are attracted to LMNR is its notable earnings growth potential in the near future of 52%. The optimistic bottom-line growth is supported by an outstanding revenue growth of 69% over the same time period, which indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives.

NasdaqGS:LMNR Past and Future Earnings, August 8th 2019
NasdaqGS:LMNR Past and Future Earnings, August 8th 2019

LMNR rewards its shareholders with attractive dividend yield, higher than the low-risk savings rate, which is able to compensate investors for taking on the risk of holding a risky stock over a riskless asset. That said, please remember that dividend yields are a function of stock prices and corporate profits, both of which can be volatile.

NasdaqGS:LMNR Historical Dividend Yield, August 8th 2019
NasdaqGS:LMNR Historical Dividend Yield, August 8th 2019

Next Steps:

For Limoneira, I’ve compiled three pertinent aspects you should further research:

  1. Historical Performance: What has LMNR’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.
  2. Valuation: What is LMNR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether LMNR is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of LMNR? 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.