By Kumar Balani
Thursday, June 09, 2022 – Virtus Global Dividend and Income (NYSE: ZTR) has net assets of $426 million now.
With just 48 million shares outstanding, this company has a net equity (book) value of $18.875 per share. Yet you can buy and own each share for just a bit over this amount at only $9.23 per share.
These days, if you look closely enough at some companies’ balance sheets and income statements, you will find great opportunities to buy their shares at reasonable prices. Further, you can also earn decent amounts of income. And if you want to be rewarded with income on a monthly basis, that is also available for you, as it is so with this company: get 96 cents per share as an annual dividend, or 8 cents per share each and every month.
At a $0.96 annual dividend, divided by its price per share of $9.23, you enjoy an annual yield of 10.40 percent. What government bond comes even close to that? The 10-year U.S. Treasury bond’s yield is only 3.04 percent. Virtus gives you nearly three-and-a-half times that yield. Say you invest $10,000 in a 10-year treasury bond. You get rewarded with $304 after ten years. Invest that $10,000 into Virtus shares, and you get $1,040 each year.
Some outstanding virtues of investing in Virtus Global Dividend-Income:
Its profitability is amazing: its gross margin is 60.35%, but with re-investment of its profits, its net profit margin is 149.42 percent
This is why its payout ratio is over 169 percent. This means the annual dividend this company sends to its investors is 69% more than its earnings each year.
Its total shareholder equity of $426 million is more than two-and-a-half times its total liabilities of $167 million.
Its shareholder equity of $426 million shown in its balance of Nov.30, 2021 has grown from $319 million on its 2017 fiscal year close. In four years, its average annual equity growth is 33 percent.
In 2022, two company people bought 3,920 shares at $38,100 cost, or $9.72 a share
