By arguably most measures, American fresh egg producer Cal-Maine Foods (CALM) seems too risky to be worth a gamble. For example, one of the takeaways about CALM stock is that it’s cheap. Right now, shares trade hands at 2.86X trailing-12-month (TTM) earnings. However, it’s quite possible that the underlying investment is too cheap.
Take a look at the annual dividend yield, which clocks in at 19.94% based on data from Barchart’s company overview screen. All other things being equal, you can load up the boat on CALM stock and enjoy 20% returns annually, a far better performance than the long-term average of roughly 8% for the benchmark S&P 500 index.
