Investing in stocks can be both a lucrative and daunting task, as there are many potential investments to choose from. But for those looking for stability, two great companies stand out:
Amdocs Limited (DOX) and Buckle (BKE). Both of these companies have little or no debt and offer dividends that make them attractive investment options.
If you are looking for details about investing in Amdocs Limited (DOX) and Buckle (BKE), in this article, we will provide you with an overview of the investment options available.
Overview
Let’s take a look at both of these companies and see what makes them attractive investments.
Amdocs Limited (DOX) overview
Amdocs, a multinational corporation established in Israel and now based in Chesterfield, Missouri with development centers scattered across the world, specializes in software and services for communication firms, media companies, financial institutions as well as digital enterprises.
The company was founded back in 1982 and has over 30,000 employees, making it one of the world’s largest software and services companies.
It is well-positioned in the market for its portfolio of telco, media, and technology products, providing a wide variety of solutions to customers around the world.
The company has a long track record of financial success, consistently delivering strong earnings growth and paying dividends since 2001.
Buckle (BKE) overview
With 451 stores situated in 42 different states, The Buckle Inc. is a flourishing American fashion retailer selling the latest trends in clothing, footwear, and accessories for men, women, and children alike!
With their signature lines ‘Buckle’ and ‘The Buckle’, they are making waves as one of America’s go-to destinations for apparel.
Founded in 1948, Buckle is one of the longest-running, family-owned and operated fashion retailers in the US. Their stores are located mainly in regional shopping centers as well as malls all across the nation.
Buckle’s mission is to provide its customers with superior service and selection while offering a unique shopping experience that caters to their individual needs.
With over 8,000 employees, the company is passionate about creating an environment that promotes personal growth and encourages creative thinking.
Financials / Little or No Debt
Let’s take a look at the financials of both companies to get a better understanding of their debt levels and dividend payments.
Amdocs Limited (DOX) Financials
With a market cap of $11.43B, Amdocs Limited has a P/E ratio of 23.78 and generates $3.57B in revenue per year. The company has a debt-to-equity ratio of 0.31, meaning it carries very little debt compared to the total equity held by shareholders.
Amdocs has a long-term debt of $2.87B and shareholder equity of $3.59B, making them very well capitalized.
This means that the company has enough assets to cover its debts and that its equity is strong. This makes Amdocs Limited a strong investment due to its lower risk of defaulting on debt payments.
The current share price of Amdocs Limited is $93.41, which makes it an attractive entry point for investors looking to gain exposure.
Buckle (BKE) Financials
On the other hand, Buckle Inc. has a market cap of $2.13B and generates almost $1.11B in revenue each year.
Buckle currently doesn’t have any debt on its balance sheet, which makes the company even more attractive to investors. Their lack of debt makes their financials much cleaner and less risky than other publicly-traded companies.
If you want to invest in Buckle, the current share price of $40.69 (as of this writing) is an attractive entry point.
Dividends & Growth and other factors
So now that we know the financials of both companies, let’s take a look at their dividend payments.
Amdocs Limited (DOX) dividends and growth rates
1.83% is Amdocs’ dividend yield, making it a moderate dividend payer. The company has also grown its dividends for the past 15 years, with an average growth rate of 4.7%. Mar 30, 2023, is the next expected ex-dividend date.
Amdocs Limited is also ranked as one of the safest stocks in the market, meaning it has a low default risk and high corporate governance score.
Buckle (BKE) dividends and growth rates
Buckle Inc. has a dividend yield of 3.29%% and has grown its dividends for the past 19 years, with an average growth rate of 10.6%.
Buckle Inc is a steady dividend payer and is currently ranked as one of the safest stocks in the market, due to its zero debt load and low default risk.
Overall, Buckle Inc. is a good long-term investment for income investors and those looking to gain exposure to the fashion retail industry. With its attractive entry point in comparison to its peers and its strong dividend policy, it’s no wonder why so many investors are flocking to this stock.
Long Term Prospects
As of now, both companies have a bright future ahead of them. Amdocs Limited provides software and services to the communications, media, and entertainment industries which are growing markets that offer long-term potential for investors.
Buckle Inc. on the other hand is one of the leading fashion retail companies in the US with over 500 stores nationwide and an increasing presence in the online market.
Both companies have strong financials and dividend policies which makes them ideal for long-term investors looking for steady returns over the long haul. As of now, both Amdocs Limited and Buckle Inc are good investments to consider.
Should You Invest?
Yes, Amdocs Limited and Buckle Inc are both good investment opportunities. Amdocs has a low debt load and strong financials, while Buckle has a higher debt load but offers a strong dividend yield and steady growth rates.
Investors should also take into consideration the industries in which these companies operate to get an idea of the long-term potential of their investments.
Ultimately, the decision to invest in either Amdocs Limited or Buckle Inc is up to each investor’s risk tolerance and goals. Before investing, investors should do their due diligence and research both companies to make an informed decision.
Conclusion
So there you have it! Both companies have shown good long-term prospects and have strong financial and dividend policies. Investing in these two companies can be very beneficial for both income investors and growth investors alike.
Both companies also have good option volume for both puts and calls. Both lend well to the options wheel strategy. Sell a put for some good cash, get assigned, sell a call for more cash, and again get assigned. Roll the wheel for some great income. Another strategy is to just sell puts until ownership and then sell way out-of-the-money options forever.
Thanks for taking the time to read the article about two great low-debt companies. If you would like to see two other great debt-free companies, here is a link. I really like well-run companies that pay good dividends. Now if they can do this with little or no debt they are in a league all their own.
Uncle Jim