Is JOYY Stock Worth Its Current Dividend Yield?

JOYY Inc. (NASDAQ:YY) is a social media company that enables users to interact with each other in real time through online live media. YY operates several social platforms, which together have over 300 million users from over 150 markets. JOYY also has a work force of over 7,900 employees located in over 30 cities across the globe. At last check, YY is trading up 0.4% at $29.60. 

JOYY stock has decreased about 58% year-over-year, and is seeing long-term overhead pressure at the 80-day moving average. Moreover, the social media company offers an extremely attractive dividend yield of 6.56% with a forward dividend of $2.04.

Still, JOYY stock’s fundamentals provide a mixed bag for investors. YY trades at a decent price-sales ratio of 0.91, their forward price-earnings ratio is placed at an incredibly rich value of 192.31. Moreover, the social media business lacks consistency with their growth, which is reflected in their 2022 sales expectations. JOYY is estimated to end fiscal 2022 with a 1.1% decrease in revenues.

The social media company is expected to grow their earnings by 15.2% for fiscal 2022 as well. In addition, JOYY’s top and bottom-line growth is expected to pick up for 2023, with estimates indicating 9.3% revenue growth and 78.3% earnings growth. This should further be helped by the fact that they hold a strong balance sheet with $4.15 billion in cash and just $918.8 million in total debt, making JOYY stock’s reward potential relatively high for long-term and dividend investors.