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Why Deutsche Post AG (ETR:DPW) Is An Attractive Investment To Consider

Deutsche Post AG (ETR:DPW) 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 DPW, it is a dependable dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Deutsche Post here.

6 star dividend payer and good value

DPW is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts’ consensus forecast growth be correct. Compared to the rest of the logistics industry, DPW is also trading below its peers, relative to earnings generated. This bolsters the proposition that DPW’s price is currently discounted.

XTRA:DPW Intrinsic value, March 10th 2019
XTRA:DPW Intrinsic value, March 10th 2019

For those seeking income streams from their portfolio, DPW is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 4.2%, making it one of the best dividend companies in the market.

XTRA:DPW Historical Dividend Yield, March 10th 2019
XTRA:DPW Historical Dividend Yield, March 10th 2019

Next Steps:

For Deutsche Post, there are three relevant factors you should look at:

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

  2. Historical Performance: What has DPW’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of DPW? 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.