Today we look at RRD:
R.R. Donnelley & Sons Company (RRD) is a global provider of integrated communications. The Company operates primarily in the printing industry, with related products and services.
In 2011, the company acquired Andover, LibreDigital, Genesis Packaging & Design Inc and StratusGroup, Inc. The stock trades at a low valuation, with trailing and forward price-to-earnings ratios at 4.5 and 6.4 respectively. The expected dividend (currently 8.7%) and the price to free cash flow ratio for the company stand at 9.2% and 6.9 respectively. The forward earnings per share is expected to decline by a meager 1.7%.
I have purchased 200 shares of this stock in a ROTH IRA, and expect to reinvest the healthy dividends in other stocks. Keep RRD as a long term holding, and increase your position if the stock decreases while maintaining the dividend. In other words, buy on dips, as long as you continue benefitting from the profits received.
Disclosure: I am long RRD (as stated).
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