Could there be a less-exciting, more yawn-invoking company to own than a business specializing in providing nursing homes, rehab centers & hospitals with housekeeping, laundry & dietary services? Probably not. So let me enthusiastically introduce you to Healthcare Services Group, Inc.!
It’s no secret that the Baby Boomers are the largest U.S. demographic and that they are now reaching retirement age. And with age comes a significantly increased need for health care and basic “daily living” services. Putting two and two together, I see a four-letter stock ticker: HCSG.
Year-over-year quarterly revenue and earnings growth have increased by 25% and 15%, respectively. A return on assets of 13% and return on equity of 19% are nothing to sneeze at. Gesundheit!
In addition, HCSG provides a forward dividend of $0.66, yielding around 3% at current stock prices. HCSG has paid an increasing dividend for 8 years, with a 5 year dividend growth rate of 25% (as of 4/15/12).
In my view, HCSG is a fantastically-boring stock that treats shareholders well and will almost certainly continue doing so. And, with the aging of our