Toyota Motor Corp (ADR) (TM) Offers Strong Dividend Yield and Earnings Growth

November 14, 2014

Managing Director Marvin Kline of Logan Capital Management says his firm added Toyota Motor Corp (ADR) (TM) in the second quarter because they found the company had a strong dividend yield and balance sheet.

Toyota, at the time we brought it, had a 3% yield. They announced that they are buying back stock,” Kline said.

FOR MORE INFORMATION ON THIS INTERVIEW CLICK HERE.

Kline says people may not be aware that Toyota’s balance sheet is comprised of cash and marketable securities. Therefore the company has a lot of asset value in addition to its operating business.

“If you subtract the value of the company’s investments from its market value, it is selling at a very low multiple of earnings,” Kline added. “At the time we bought the stock, Toyota’s stock price had been knocked down because it announced a major recall of 6.4 million vehicles. So at the time of purchase, we found the stock attractive because of the dividend yield, the strong balance sheet and its earnings growth.”