The window of opportunity for a value investment may promptly come to a close. As DuPont's shares continue to climb towards a new 52 week high, the media will pick up on the story while technical analysts will fixate on the solid bullish trend with rising fundamentals. Part of the hesitation may come from analysts.
More than half of the analysts covering DuPont rate the company a hold. This boggles my mind, but whatever, they often upgrade on peaks and downgrade at the very bottom. To be fair, some analysts I follow closely and genuinely embody a talent for extrapolating the appropriate share price bias.
If you buy DuPont, you can expect to receive $1.72 annually in dividend payments for a current yield of about 3.5%. DuPont raised the dividend last year. The 2012 dividend increase was the first since 2007, so don't count on dividend hikes each year like AT&T, but the yield is already rich.
The short interest is slightly elevated, albeit, not yet enough to make me want to worry about it. As long as it stays under 4.5%, I wouldn't give it much thought. Short interest is 3.8%, and if it begins to trend higher I recommend monitoring for a possible exit.DD Payout Ratio TTM data by YCharts
At the time of publication the author held no positions in any of the stocks mentioned. Follow @RobertWeinstein This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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