WD-40: Still A Risky Play After 40% Drawdown $WDFC
WD-40 Company (NASDAQ:WDFC) is well-known by many. Its blue, yellow and red can is easily recognizable and helps people solve everyday problems with anything that should move, but doesn't. Its namesake product has over 2000 documented uses.
WD-40 is a global company with the Americas providing ~44% of sales, the EMEA region 43%, and the Asia-Pacific area 13% for Q2. Management expects the Asia-Pacific region to grow the fastest as they have the least penetration in that market, followed by EMEA, and then the Americas.
When I last examined WD-40, it appeared very richly valued with sky high prospects for an otherwise slow and steady business. WD-40's share price is down over 40% since its high reached in early 2021. Seeing that kind of decline made me want to take another look to see if the risk:reward ratio has changed.
Dividend History
The dividend growth investment strategy is the one that most appealed to me when I first began investing. It's a simple strategy in that you aim to buy, at reasonable valuations, quality businesses that have a history of paying and consistently growing their dividend over time.
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