The Return of a Dividend!
After a nearly five-year absence, NN, Inc. (NNBR) - a small cap bearing and machinery manufacturer - has restored its dividend! Woo Hoo!
From the press release:
“The reinstatement of a quarterly cash dividend is the product of our strong cash flow and debt retirement performance over the last three years which has significantly strengthened our balance sheet, said Mr. Rich Holder, President and Chief Executive Officer.
The company still has some debt, but the balance sheet is in much better shape than it was a few years ago. It's cheap on most valuation metrics and should be in good shape if autos, trucks, housing, etc. recovery continues to slog ahead.
I owned a few shares several years ago, sold when it looked like the company was in trouble, then bought back a small position when the stock dropped to a buck something. About two years ago, NNBR was the first and only stock I've owned to pull a spiffy pop.
Today wasn't spiffy pop territory, but a 9% bump on the news was, well, pretty good news. NNBR is still negative on my CAPS scorecard, but positive in real life since the entry point is way below the pick start price. I'll gladly take real money over CAPS points any time.
Fool on! Russ