The AFR is reporting Morningstar has an "accumulate" rating for medical business Primary Health Care Limited (ASX: PRY), saying fair value for the shares are $5.00.
"The ageing population and ongoing technology innovation will also help underpin pathology and radiology test volumes," Morningstar said.
Last month, Primary Health Care Limited reported a pleasing set of full year results, the highlight being a 14.3% jump in the full year dividend to 20 cents per share. Despite that, shares in the medical centre operator are trading close to a 52-week low.
Primary Health Care shares trade on a P/E of around 14 and a fully franked dividend yield of around 4.5%. Given that modest valuation, and attractive dividend yield, it's no wonder Morningstar is attracted to the shares.
An even better bet than Primary Health Care?
A 4.5% fully franked dividend is not to be sneezed at, and Primary Health Care certainly looks an interesting investment opportunity.
However, if it's growth you're after, there are better bets than Primary Health Care.
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