Compass Diversified: A ‘Big Div’ Growth Stock Priced Like A Value Stock

By H.J. Huney:

There’s nothing better than finding an undervalued stock with a huge dividend. Particularly in these volatile times, dividend stocks are highly advantageous, as they provide a source of cash flow to your portfolio, even when the general direction of the market is down.

While dividend stocks are often great for retirees looking for a source of extra cash, younger investors shouldn’t ignore their importance, either. Dividends can provide some insurance against market volatility, giving an investor more cash to buy in “on the way down”; thereby boosting long-term returns. In a world where correlation among stocks and other asset classes appears to be on the rise, this can be important.

Another advantage of dividends is they are the best reaffirmation of earnings. Companies can play games with their financial statements, but it’s difficult to pay out large dividends over a long period of time unless there was a lot of

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