Collectors Universe: "Authentic" Gains

05/08/2017 2:50 am EST


Ned Piplovic

Assistant Editor, Eagle Financial Publications

Collectors Universe Inc. (CLCT) — a collectibles authentication service — offers a dividend payout equivalent to 5.2% to accompany its one-year share price increase of 51.5%, notes Ned Piplovic in Eagle Financial Publishing's

With significant dividend yields and extraordinary share price growth, this equity could be worthy as an addition to any portfolio for dividend income and asset growth.

Collectors Universe Inc. provides authentication, grading and other related services for rare and high-value collectibles consisting of coins, trading cards, sports memorabilia and autographs.

The company offers independent authentication and grading services under several brand names. Additionally, the company publishes several magazines, runs a certified coin exchange and operates three collectibles market websites.

The company generates additional revenue by selling advertising in its magazines and websites, as well as organizing collectibles trade shows and conventions.

The quarterly dividend distribution of $0.35 is equivalent to a $1.40 annual payout and yields 5.2%. Since starting to pay a dividend in 2006, the company lowered its annual dividend only once. The payout did not change, but the company paid only one dividend in 2009.

Over the last 11 years, the annualized dividend payout grew at an average annual rate of 15.7%. The current annualized payout rose five-fold over the last decade.

After losing about 40% of its value in late 2015, the share price took the entire 2016 to recover. The share price fluctuated mainly between $17.50 and $22 between late April 2016 and the beginning of February 2017, when it began its most recent uptrend.

By early March 2017, the share price reached the 2015 level before the 40% drop and continued to rise to its current level above $27.

The 50-day moving average reversed its uptrends and started dropping in September 2016. By the time the share price hit its 52-week low in early October, the 50-day moving average was trending to cross the 200-day moving average in a bearish manner. However, the 50-day moving average reversed trend once again and has been rising ever since.

The 50-day moving average continues the rising trend and is currently 16.4% higher than the 200-day moving average, which indicates that despite the 51.5% growth over the past year, the share price still might have room climb further.

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