Stanu, whenever you look at a company like ACAS, you ask yourself several questions.
1) Is the dividend safe? Over the recent history the company has shown not only to be able to maintain the dividend, but has been able to grow it as well. The company has forecasted paying a dividend anywhere from 3-3.14 this year up from $2.92 last year. And with .75 dividend in the first quarter the company appears to be well on its way to meeting their forecasts of the dividend payout for this year.
2) Will ACAS share price rise, and knock down the yield, because 9% is too high if a company is this solid? 1) With interest rates going up it makes the yield less attractive, yet at 9% I don't think it will be adversely affected in that respect. 2) The company is solid, but the one major caveat with this company is their is some significant debt on the balance sheet, which makes this one less attractive. Best case scenario stock rises to about $40 (not sure if it will get this far, probably sell if it hit around $38 though), which would be about 7.5% dividend yield in my opinion anything more with the debt levels of this company, as Cramer says, "It would be time to ring the register." Yet I don't see it dropping dramatically either.
Overall Opinion: This is a stock I would take a small position in if I was searching for companies to invest in. Yet the thing I don't like is the debt levels, but their not terrible, and that yield is pretty atrractive and make the stock hard to pass up. Also, I will say I liked the stock a lot better at 31.63 when I first mentioned the stock (links below) then I do now at 34 and change, having said that its still attractive because of the dividend, but only for a small position. Of Course this all just my humble opinion, and as always do your own DD.
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