The Motley Fool

Why the SDI share price just hit a 52-week high

The SDI Limited (ASX: SDI) share price hit a 52-week high of 64 cents today, despite the dental products manufacturer releasing no specific news to the market.

Victoria-based SDI sells its dental materials such as amalgam, aesthetic and whitening products, with the company exporting more than 90% of its products overseas for distribution to more than 100 countries.

In FY 2018 it grew net profit 1.5% to $5.7 million, with its second half profit up 27% on the prior corresponding half-year period.

It’s the momentum of improving sales over the second half that is probably encouraging investors to bid the stock higher as it transitions from an amalgam company more into the whitening and aesthetics space.

It paid dividends totalling 2.5 cents per share over FY 2018 on 4.8 cents in earnings per share over the year. As such it offers a trailing yield of 3.9% on a price-to-earnings multiple of 13.3.

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has recommended SDI Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.