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How Data#3 Limited (ASX:DTL) Could Add Value To Your Portfolio

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Data#3 Limited (ASX:DTL) due to its excellent fundamentals in more than one area. DTL is a highly-regarded dividend payer that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Data#3 here.

Flawless balance sheet average dividend payer

DTL’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. DTL appears to have made good use of debt, producing operating cash levels of 30.13x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

ASX:DTL Historical Debt August 22nd 18
ASX:DTL Historical Debt August 22nd 18

DTL is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

ASX:DTL Historical Dividend Yield August 22nd 18
ASX:DTL Historical Dividend Yield August 22nd 18

Next Steps:

For Data#3, I’ve put together three essential factors you should further research:

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

  2. Historical Performance: What has DTL’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 DTL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.