Why I Will Never Buy Yirendai Ltd. Stock
Chinese online lender Yirendai (NYSE: YRD) might initially seem like a good investment. Analysts expect its revenue and EPS to respectively rise 69% and 7% this year, followed by 40% sales growth and 44% earnings growth next year.
Yirendai's stock also looks cheap at 10 times earnings and 8 times next year's earnings, and the company recently paid a special dividend of $1.50 per share (a 3.5% yield when it was paid in late September) and introduced a semi-annual dividend equivalent to roughly 15% of its net income.
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Source: Fool.com