Avon Products, Inc. (AVP) boasts an attractive ROE of 108%, which is much higher than the industry average of 13%. The strong ROE is one sign of growth, while on the income side the company offers a dividend yield of 2.3%. The yield is also higher than the industry average as virtually no companies within AVP’s industry group pay a dividend. Avon paid out its most recent quarterly dividend of 20 cents per share in early June.

Company Description

Avon Products is global beauty company, with $10 billion in annual revenue. It is the world’s largest direct seller, marketing to women in more than 100 countries through over 5.4 million independent Avon representatives. The company’s product line includes beauty products, fashion jewelry and apparel, and features such well-recognized brand names as Avon Color, Anew, Skin-So-Soft, Advance Techniques, Avon Naturals and Mark.

Income

In early Many, Avon declared a regular quarterly dividend of 20 cents per share, which was paid out on June 2, 2008. The company offers a dividend yield of 2.3%, which is higher than the industry average as virtually no companies within AVP’s industry group pay a dividend.

Growth

The company announced first-quarter results in late April, noting that beauty sales climbed 17%, while active representatives increased by 14%. First-quarter earnings per share jumped 26%.

Avon’s earnings per share are expected to grow by 14% over the next 3 – 5 years, versus the industry average of 12%. The company boasts an attractive ROE of 108%, which is much higher than the industry average of 13%.

Wall Street is forecasting full-year 2008 earnings per share of $2.19, an upward revision from the two months-ago level of $2.15.

Content Courtesy: Zacks Investment Research

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