3 Reasons to Buy This Great Value Dividend Stock
Just about everything is going against auto parts suppliers like Autoliv (NYSE: ALV) right now. A combination of soaring raw material costs and falling light-vehicle production (LVP) volumes are causing significant sales shortfalls and squeezing profit margins. As a result, there's a lot of negative near-term news. However, ignore the negativity, a stock like airbag, seat belt, and steering wheel manufacturer Autoliv offers a rare value opportunity for smart investors. It's not just about Autoliv's 2.5% dividend yield; this stock has significant growth potential.
The latest fourth-quarter results from the company highlight many of the near-term issues. Autoliv's net sales fell a whopping 15.8% in the quarter on a year-over-year basis. Meanwhile, the adjusted operating margin slumped from 12.4% in the fourth quarter of 2020 to 8.3%, resulting in a 43.2% fall in operating income to $174 million.
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Source Fool.com
