Logista LOG I just received my dividend

🟢 OPTIMAL in my model. Quality 78/100, Opportunity 70/100.

Yield 5.6% (forward 5.8%)
Payout ratio relative to cash flow of 45.9%, coverage ratio of 2.02x. The GAAP payout ratio is 95.8%, but it’s distorted by non-cash charges. The dividend is paid out of actual cash, not paper assets.
ROE 42.5% and negative net debt. Impeccable balance sheet.
Dividend growing at 16.5% annually over 5 years, +8.9% in 2025.
The €20.9 million antitrust fine has been overturned.

What gives me pause:

Reliance on tobacco, which is in structural decline.
Tight margins (EBIT 2.9%), sensitive to transportation costs.
Ongoing French tax audit of €13.4M.

The market is punishing the tobacco sector; I see a near-monopoly distribution network in Southern Europe that generates plenty of cash flow.

JotaUve@JotaUve

I've been thinking about increasing my intake; although my (fortunately decreasing) dependence on tobacco is holding me back in the long run—what levels do you stick to?

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Kini - Dividend Strategy@investron

I have 2% of my portfolio. But I'd feel comfortable with 4%. Never more than 5%.

Pedro M.@serkeftin

@JotaUve It accounts for only 0.8% of my total portfolio, but that's because I like the strategy of holding many different positions. The stock is performing very well, both in terms of dividend yield and share price.

Logista (LOG): I just received my dividend.