Newell Brands Inc. (NWL) has been one of the most requested stocks that I’ve been asked to provide an analyze out loud video on. When I first looked at it, I had to wonder why people were so interested in this particular stock. Then I realized that statistically, it looks great. The company’s blended P/E ratio is quite low at 8.5 which is approximately half of what I would consider attractive, so valuation appears enticing. As a result, the dividend yield is 4.2% which is quite high in today’s interest rate environment. Moreover, the company only has 39% debt to capital which is also reasonable.

Nevertheless, I do consider the company too cyclical for my taste. On the other hand, the valuation is compelling. But, as I illustrated in the video, recent operating results have also been weak along with the stock price. Consequently, I would only consider the stock a turnaround opportunity rather than a blue-chip dividend growth stock. I will explain my position in the video.

                                                                   (Video length 00:10:11)

 

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