Interested in investing in gaming stocks? Instant tickets are one of those products that do well in good and bad economic times. People can’t seem to resist spending a couple of dollars on the chance they’ll win big. With that thought in mind, let’s take a look at a gaming company you might want to consider for your portfolio.
Pollard Banknote Ltd. (TSX:PBL) is a Winnipeg-based company that bills itself as the leading expert in instant tickets. It has been in operation for over 30 years and creates tickets for more than 60 companies across the globe. Pollard Banknote spends time on extensive market research and algorithm design in its effort to create tickets that people want to buy. The newest addition to the company’s ticket licensed brands is Ms. PAC-MAN tickets, which have been selling well in the U.S. market.
Pollard Banknote by the numbers
What’s to like about Pollard Banknote? Over the last three years, its revenue growth has averaged 10.04% annually, meaning it provides consistent, positive results. Its earnings-growth number looks even better at 30.88% annually — much higher than the industry average of 10.74%.
Pollard Banknote’s return on investor equity number is an impressive 21.34%. (Analysts like numbers in the 15-20% range.) So, the company does a good job of taking investor money and creating positive returns.
If you are interested in dividends, Pollard Banknote’s dividend yield is 1.10%. The company currently pays a quarterly dividend of $0.03. While this rate isn’t high, it’s been the same since 2014, showing consistency in its payouts.
Pollard Banknote hasn’t been making news this week the same way another company, Great Canadian Gaming Corp. (TSX:GC) has, but that’s a good thing. Great Canadian Gaming’s excellent earnings results have pushed its stock price to a new 52-week high, meaning that stock isn’t a bargain right now. Pollard Banknote looks like it has more room to grow in the near future.
If you want to buy and hold a company with consistent results, and one that will likely do well in any economic situation, consider adding Pollard Banknote to your Foolish portfolio.
11 months ago Motley Fool co-founder and CEO, Tom Gardner, recommended a small-cap tech company to exclusive members of his U.S. newsletter service, Motley Fool Stock Advisor.
Today, that stock is up over 200%, and members that invested on his recommendation have more than double their money in less than a year.
You see, Tom found out about this e-commerce company while on a trip to Toronto, as he visited our Canadian investing team. Click here to learn more!
Fool contributor Susan Portelance has no position in any stocks mentioned.