Should You Gamble on This Gaming Stock?

Should you gamble on a gaming stock? Let’s take a look at Pollard Banknote Ltd. (TSX:PBL).

Interested in investing in gaming stocks? Instant tickets are one of those products that do well in good and bad economic times. People can’t seem to resist spending a couple of dollars on the chance they’ll win big. With that thought in mind, let’s take a look at a gaming company you might want to consider for your portfolio.

Pollard Banknote Ltd. (TSX:PBL) is a Winnipeg-based company that bills itself as the leading expert in instant tickets. It has been in operation for over 30 years and creates tickets for more than 60 companies across the globe. Pollard Banknote spends time on extensive market research and algorithm design in its effort to create tickets that people want to buy. The newest addition to the company’s ticket licensed brands is Ms. PAC-MAN tickets, which have been selling well in the U.S. market.

Pollard Banknote by the numbers

What’s to like about Pollard Banknote? Over the last three years, its revenue growth has averaged 10.04% annually, meaning it provides consistent, positive results. Its earnings-growth number looks even better at 30.88% annually — much higher than the industry average of 10.74%.

Pollard Banknote’s return on investor equity number is an impressive 21.34%. (Analysts like numbers in the 15-20% range.) So, the company does a good job of taking investor money and creating positive returns.

If you are interested in dividends, Pollard Banknote’s dividend yield is 1.10%. The company currently pays a quarterly dividend of $0.03. While this rate isn’t high, it’s been the same since 2014, showing consistency in its payouts.

Pollard Banknote hasn’t been making news this week the same way another company, Great Canadian Gaming Corp. (TSX:GC) has, but that’s a good thing. Great Canadian Gaming’s excellent earnings results have pushed its stock price to a new 52-week high, meaning that stock isn’t a bargain right now. Pollard Banknote looks like it has more room to grow in the near future.

Bottom line

If you want to buy and hold a company with consistent results, and one that will likely do well in any economic situation, consider adding Pollard Banknote to your Foolish portfolio.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Susan Portelance has no position in any stocks mentioned.

More on Investing

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Is CNR Stock a Buy, Sell, or Hold for 2025?

Can CNR stock continue its long-term outperformance into 2025 and beyond? Let's explore whether now is a good time to…

Read more »

engineer at wind farm
Energy Stocks

Invest $20,000 in This Dividend Stock for $100 in Monthly Passive Income

This dividend stock has it all – a strong outlook, monthly income, and even more to consider buying today.

Read more »

Hourglass and stock price chart
Stock Market

It’s Not Too Late: Invest in These TSX Growth Stocks Now

Solid fundamentals of these top TSX growth stocks could help them maintain strong upward momentum in the years to come.

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Dividend Stocks to Buy With $500 Right Now

These top dividend stocks both offer attractive yields and trade off their highs, making them two of the best to…

Read more »

stocks climbing green bull market
Stocks for Beginners

3 TSX Stocks Soaring Higher With No Signs of Slowing

Don't ignore stocks just because they look like they're at a high price. Instead, see exactly why they've driven so…

Read more »

dividends can compound over time
Bank Stocks

Is TD Bank Stock a Buy for Its 5.2% Dividend Yield?

TD Bank stock offers a rare 5.2% dividend yield—can it rebound from challenges and reward contrarian investors? Here's what to…

Read more »

chart reflected in eyeglass lenses
Investing

How Should a Beginner Invest in Stocks? Start With This Index Fund

This Vanguard index fund is the perfect way to start a Canadian investment portfolio.

Read more »

analyze data
Bank Stocks

Is BMO Stock a Buy for its 4.7% Dividend Yield?

Bank of Montreal is up 20% since late August. Are more gains on the way?

Read more »