Remitly Global Doesn't Pay a Dividend and Constantly Dilutes Shareholders. Here's Why I'd Still Buy and Hold It Forever.
Share count growth should not be ignored, but it doesn't make a company uninvestable.
Overview
Value-focused investors might ignore stocks with a high trailing price-to-earnings ratio (P/E), no dividend payments, and consistent shareholder dilution. That describes Remitly Global (NASDAQ: RELY) perfectly. And yet, I think it is a great value for investors looking to buy right now.
The remittance disruptor is consistently gaining market share and expanding globally with its mobile-first service, driving consistent revenue and earnings growth. Here's why -- despite shareholder dilution -- I would buy Remitly stock today and hold it forever.
Details
Remittances are international money transfers, and used to have high fees charged by providers like Western Union and global banks. Remitly is a modern solution that drives down costs for consumers and businesses while allowing them to send money digitally to various destinations around the world, including digital bank accounts or cash pick-up.
Source
Originally published at www.fool.com.