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Is Severn Trent Plc (LON:SVT) Potentially Underrated?

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Severn Trent Plc (LON:SVT) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of SVT, it is a dependable dividend-paying company with a an impressive track record of delivering benchmark-beating performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Severn Trent here.

Established dividend payer with proven track record

Over the past year, SVT has grown its earnings by 32%, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, SVT also outperformed its industry, which delivered a growth of 5.2%. This is an notable feat for the company.

LSE:SVT Income Statement, June 27th 2019
LSE:SVT Income Statement, June 27th 2019

For those seeking income streams from their portfolio, SVT is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 4.5%.

LSE:SVT Historical Dividend Yield, June 27th 2019
LSE:SVT Historical Dividend Yield, June 27th 2019

Next Steps:

For Severn Trent, there are three pertinent aspects you should further research:

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  1. Future Outlook: What are well-informed industry analysts predicting for SVT’s future growth? Take a look at our free research report of analyst consensus for SVT’s outlook.

  2. Financial Health: Are SVT’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SVT? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.