This Small Cap Stock is a Money Machine

This Small Cap Stock is a Money Machine

#Dividends #Smallcap #Passiveincome

I’ll be dollar cost averaging into this small cap dividend payer over this next year until I reach my desired position size. PetMed (1-800-PetMeds) has increased its dividend by 11% annually on average for the past five years consecutively – a trend that is showing no signs of changing course anytime soon. PetMed currently has a 12-month trailing payout ratio of only 46% and is forecast to grow its top line by a commanding 8.3% next year. That said, the company should have plenty of room and financial firepower to expand its payout going forward.

PetMed Express, Inc. and its subsidiaries, doing business as 1-800-PetMeds, operates as a pet pharmacy in the United States. It markets prescription and non-prescription pet medications, and other health products for dogs and cats directly to the consumers. The company offers non-prescription medications and supplies, including flea and tick control products, bone and joint care products, vitamins, treats, nutritional supplements, hygiene products, and supplies; and prescription medications, such as heartworm preventative, flea and tick preventative, arthritis, thyroid, diabetes, pain, heart/blood pressure, and other specialty medications, as well as generic substitutes. It also sells food, beds, crates, stairs, strollers, and other pet supplies. The company sells its products through its Internet Website; telephone contact center; and direct mail/print through brochures and postcards. PetMed Express, Inc. was founded in 1996 and is headquartered in Delray Beach, Florida.

https://www.grandviewresearch.com/press-release/global-pet-care-market

https://www.cnbc.com/2018/08/31/millennials-put-pets-first-when-buying-a-home.html

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Disclaimer: I’m not your financial advisor, attorney, or tax professional, and nothing I say is meant to be a recommendation to buy or sell any financial instrument. This video is intended for entertainment purposes only. Do your own due diligence, and take 100% responsibility for your financial decisions. Seek professional advice and guidance to aid your financial decisions.

16 Comments

  1. Qulani K on June 17, 2019 at 6:28 pm

    Boss

  2. TheNumber2Pencil546 on June 17, 2019 at 6:29 pm

    Great video. I saw a comment you made on PPCIan”s video and decided to check your channel out – glad I did! Subscribed!

  3. Gaurav Patel on June 17, 2019 at 6:29 pm

    You should do a video on how you compile the data on that chart and where you get the information from.

  4. Dedric Butler on June 17, 2019 at 6:33 pm

    I like your stock videos please do a video on IBM Stock

  5. suman c on June 17, 2019 at 6:39 pm

    Great analysis Kenny. Subbed…
    Came across your channel while analyzing Petmeds. Going to buy it on Monday, very excited for the price correction and buying opportunity.

    If possible, invest in good frontal light, the ambience feels gloomy in your video.

  6. BR Investing on June 17, 2019 at 6:39 pm

    If I move back into US stocks, this might actually be something to look at. It has no debt and that’s my favorite kind of company. They have 1/6 in cash. They might go out and but some bolt on acquisitions if needed. Pay a dividend that has a nice yield.

    It also is in two fields I have no exposure in, e-commerce and B2C, and pets in general.

    So I would keep an eye out on this company. Think this company might have some steam left.

    I own O, but I am going to ask you a mean question. Would you sell O for EPR? Both monthly dividend payers, O might have peaked, and EPR has room to grow. O trades at 4% yield, and EPR at 6%

    One of thought processes that keeps me busy, take my O profit and invest in EPR or let O run.

  7. wolfflow on June 17, 2019 at 6:46 pm

    Great take. Looking forward to more.

  8. Bill Schultz on June 17, 2019 at 6:53 pm

    Nice breakdown. I hadn’t looked at PetMeds before.

  9. Nishal Nandwani on June 17, 2019 at 6:54 pm

    What do you think of PETS now? a video on your thoughts would be great considering the beating it’s taking (stock price and earnings) from all the competition. Seems like there’s no moat around the business if price wars can hurt earnings this much.

  10. Matthias Wolf on June 17, 2019 at 6:58 pm

    How do you see the competition with big players like Amazon in the future?

  11. Jeff Kessel on June 17, 2019 at 7:04 pm

    Nice video. I just picked it up. Seems too cheap. Really beat down off the highs.

  12. Alan Calvert on June 17, 2019 at 7:05 pm

    If you like dividends for long term I would look to more large caps like T or IBM which is paying well with low PE but both have large debt. F also but not as much growth. PETS would be a good small cap alternative

  13. Cheryl LaFortune on June 17, 2019 at 7:05 pm

    I own PETS and agree with your analysis. I have been buying it for a while so I own it in the $22-38 range. I am a little confused about why it has dropped so low. Let’s hope it comes back big!

  14. Gerry R Welch on June 17, 2019 at 7:17 pm

    I just took a small position in MFC, your thoughts? Btw im a new investor and just found your channel, loving it so far, good work.

  15. The Broke Investor on June 17, 2019 at 7:21 pm

    Thanks for the video.
    I know this video is older but I’m starting a position in PETS.
    Starting yield today is 4.85%

  16. Gerry R Welch on June 17, 2019 at 7:26 pm

    Hi Kenny, I would love to hear your thoughts on THO. I recently took a position in WGO for more of a personal reason as I think they make a better product. That being said with me being new to investing and being able to read balance sheets etc., THO seems like a better investment even though they have been missing on earnings lately and have been beaten down this year for it which may make for a great value play, not to mention they have grown their dividend quite a bit and looks to have less debt.

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