Morning Shane,
InvoCare (IVC) is a company we have been indeed considering after its major 2-year pullback as competition intensified and then COVID hit it for 6! They’ll likely announce a weak set of numbers when they report full year earnings on the 24th February expectations for a decline in sales of 6% over the year with a 45% decline in earnings.
This is a stock on MM’s radar and we think a recovery will play out implying recent weakness will present a good medium term buying opportunity in a quality stock. The risk / reward for capital gain feels good but the 12-months projections for yield are only ~1% fully franked so the business will need to step up for the yield component to follow suit, far from out of the question but investors shouldn’t assume IVC will be back to previous dividend levels in the next few years.