Crown Craft (CRWS) came through a screen we ran where the objective was to find dividend-paying companies trading at low valuations. Crown Craft at present is trading with a P/E of 8.7 and is paying a forward dividend of $0.32, which currently equates to a yield of 5.61%. Being well above average, the dividend is a great place to start when researching the company. The reason being that the sustainability of dividend encompasses the income statement, cash flow statement as well as the balance sheet.
Suffice it to say, the holy grail of value investing is to buy companies that are undervalued and which also return plenty of the company’s cash flow to shareholders. We state this because dividends have accounted for almost half of the gains of the S&P 500 over the past century.
In saying this, Crown Craft’s dividend of $0.32 per share has been at this level
It is no secret that there is a wealth gap in America. Many nations have these wealth gaps among different races and ethnicities, but they are more easily tracked in the most developed economy in the world. Before considering the impact of the 2020 recession, there was some good news and some bad news in the wealth gap and disparities among different races in America.
The Federal Reserve has released its 2019 Survey of Consumer Finances. While the broad report is vast and covers many topics, the Fed also broke down how those wealth disparities look by race and ethnicity. Since the most recent similar report in 2016, the Fed indicated that the typical white family has about eight times the wealth of the typical Black family and about five times the wealth of the typical Hispanic family.
The Fed indicated that median wealth