In my May 23 HEICO Corporation's (HEI and HEI.a) post, I disclose the purchase of 200 Class A non-voting shares @ ~$132/share. Upon further reflection, I have increased my HEICO exposure in the FFJ Portfolio with the purchase of another 100 shares at ~$127/share on May 26. This brings my exposure to 400 shares in a 'Side' account and 300 shares in a 'Core' account within the FFJ Portfolio.
HEI is unlikely to appeal to investors who fixate on dividend metrics because it:
- distributes a dividend semi-annually (mid-July and mid-January); and
- the dividend yield is typically well below 1%.
Dividend income, however, is not my primary focus; I am interested in a company's total potential long-term investment return.
HEI has generated an average annual total return in the past decade that slightly exceeds 23+%. I envision a comparable rate of return over the next decade.
In the grand scheme of things....why would HEI's unattractive dividend metrics dissuade an investor from investing in this company?
My Final Thoughts are unchanged from my May 23 post.
I wish you much success on your journey to financial freedom!
Note: Please send any feedback, corrections, or questions to [email protected].
Disclosure: I am long HEI.a.
Disclaimer: I do not know your circumstances and do not provide individualized advice or recommendations. I encourage you to make investment decisions by conducting your research and due diligence. Consult your financial advisor about your specific situation.
I wrote this article myself and it expresses my own opinions. I do not receive compensation for it and have no business relationship with any company mentioned in this article.