The pandemic prodded many people to hit the road and enjoy the great outdoors while spending time with loved ones, asserts John Dobosz, editor of Forbes Dividend Investor— and a participant at the MoneyShow Last Vegas, Sept. 12-14. Learn more here.
A big beneficiary of the recreational vehicle boom has been Lincolnshire, Ill.-based Camping World Holdings (CWH), a company headed up by CEO Marcos Lemonis who is fairly famous from "The Profit" on CNBC.
Camping World is a retailer of recreational vehicles and related products and services, with more than 200 retail locations in 36 states.
RV and outdoor retail sales account for 97% of revenue, with the rest coming from Camping World's Good Sam segment, which provides programs, plans and services for protecting, insuring and promoting the RV lifestyle.
The company's most recent quarterly earnings report exceeded expectations. Revenue this year is expected to climb 23.3% to $6.72 billion, with earnings jumping 73.2% to $6.34 per share, giving the stock a price-earnings ratio of 6.3, less than half its five-year average P/E of 12.8.
CWH sports discounts all five valuation metrics factored into our model, including price-sales, price-to-book value, price-to-free cash flow, and enterprise value/EBITDA.
Last month, Camping World announced that it was doubling its quarterly dividend to $0.50 per share from $0.25, giving the stock a yield of 5.11%.
The company produced $7.83 in free cash flow per share over the past 12 months, which gives it plenty of room to pay out $2.00 per share in dividends. The ex-dividend date for the upcoming $0.50 per share payout is September 13.