Kadant's 5-Year Investment Performance Sparks Interest
Kadant Inc.'s impressive share price growth over the last five years has been driven by its compound earnings per share (EPS) growth of 15% per year, lower than the 38% average annual increase in the share price. This suggests that market participants hold the company in higher regard, which is hardly surprising given the track record of growth. The significant difference between the EPS growth and share price return highlights the importance of dividend payments in boosting total shareholder return (TSR).
- The long-term performance of Kadant's stock raises interesting questions about the company's ability to sustain its growth momentum in a rapidly changing market.
- Will Kadant's investors be able to continue benefiting from its generous dividend policy, or are there underlying issues that could impact the company's ability to maintain its TSR?