Penny dividend stocks offer high, stable yields and solid upside potential. These investments give an opportunity to diversify beyond larger, well-known companies. Smaller businesses often have a history of paying consistent dividends. BAB Inc (BABB), a franchise of casual eateries, exemplifies a stable penny stock with impressive revenue and EBITDA growth rates. Its stock trades at low earnings multiples, and its PEG ratio below 1 points to potential growth. With minimal debt and a growing cash balance, it represents an appealing buy-and-hold option for unaware investors.
BAB Inc (BABB) is a franchise business operating casual eateries that sell bagels, muffins, and coffee. It does not operate the stores directly, making money by licensing brands.
The company has a solid revenue growth rate of 4.9% annually over three years, with an EBITDA growth rate of 7.8% annually, indicating strong performance.
The stock currently trades at less than 13 times earnings with a PEG ratio of 0.89. A PEG ratio below 1 suggests significant upside potential for investors.
With a market capitalization of $6.54 million and an enterprise value of $4.78 million, BAB Inc presents a viable investment option with a growing cash balance and limited debt.
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