Universal Display Is Suddenly a Compelling Dividend Stock -- Is It Worth Buying Now?
Buying the dip has stopped working this year for shareholders of Universal Display (NASDAQ: OLED). In fact, the products and processes provider for OLED screen manufacturing has fallen below where it was in March 2020 (when pandemic lockdowns began) and has reset all the way back to levels not seen since early 2019. Blame a slowing global economy and higher interest rates, which lower the present value of stocks.
But many investors might be overlooking Universal Display's potential, especially as an income-generating dividend stock. In fact, while the current dividend yield might not look like much, this company has a strong track record so far in doling out dividend pay increases over the last few years. Is Universal Display worth buying for that dividend right now?
The bear market caused by economic uncertainty this year isn't just negatively impacting Universal Display's stock price. After a two-year run in strong consumer electronics spending, a decline in smartphone sales is expected in the second half of this year. Ongoing pandemic lockdowns in China are also reducing end-user demand for electronic devices. Plus, supply chain issues around the world are affecting orders for OLED materials. The company reported a slowdown in expected sales last quarter, lowering its full-year revenue outlook to $600 million (from $625 million to $650 million).
Source Fool.com
