What’s a company to do when its EUR788m mountain of cash on hand has grown to nearly a quarter of its total market cap? Well, the standby option is normally a big dividend or a big acquisition. Management at gambling software provider Playtech (LSE: PTEC) has broken the mould and opted for both.
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Playtech has long paid out impressive dividends but in August the company surprised investors with a bumper EUR150m special one on top of a 15% increase to interim payouts. Analysts were already forecasting a 5.3% full year yield, so income investors should be very interested in this development.
A big chunk of Playtech’s remaining cash hoard is being spent on adding to the company’s dominant position in gambling software as well as expandin…
Read the full article at: http://money.aol.co.uk/2016/11/14/another-wise-acquisition-cements-this-growth-and-income-stock-as/