A Solid Q4 for 16%-Yielding NHTC Stock
February 21, 2025
Natural Health Trends Corp Stock Up 9% in 2025
Today’s focus pick, NHTC stock, might seem controversial to some, but it’s definitely worth a look.
Multi-level marketing companies (MLMs) often get a bad rap for being pyramid schemes, or for their seemingly pushy or intrusive sales reps that believe your life would be better with their laundry soap, fiber pills, herbal supplements, or perfume.
But the fact is, MLMs make a lot of money, and they’re known for rewarding shareholders that get in early.
Case in point, President Donald Trump has made millions of dollars promoting ACN Inc, an MLM firm. In addition to endorsing ACN, he also featured it twice on his reality show, “The Celebrity Apprentice.” (Source: “Donald Trump Made Millions From Multilevel Marketing Firm,” The Wall Street Journal, last accessed October 15, 2024.)
Even without President Trump on its side, the MLM industry continues to do well. In 2021, the global market size was valued at $201.0 billion. By 2030, it is forecast to hit $329.0 billion, expanding at a compound annual growth rate (CAGR) of 6.5%. (Source: “MLM Market Size, Share, Trends, Growth 2030,” Zion Market Research, last accessed February 18, 2025.)
MLMs like overlooked Natural Health Trends Corp (NASDAQ:NHTC) can really reward passive income investors, too. With a market cap of just $60.67 million, it’s on the smaller side of the MLM world.
But there are a lot of larger, well-known MLMs on Wall Street, including Herbalife Ltd (NYSE:HLF) and NU Skin Enterprises Inc (NYSE:NUS). Unfortunately, Herbalife doesn’t pay a dividend and NU Skin’s dividend yield is just 3.17%, and neither company’s stock is doing very well at the moment.
On the other hand, there’s Natural Health Trends Corp; its stock is up 9.5% in 2025 and it has a dividend yield of 16.46%.
With a member base of over 30,000 people, Natural Trends is a global company, with products available in nearly 50 countries. It has offices in North America, China, South Korea, Japan, Russia, and Europe. (Source: “Corporate Fact Sheet,” NHT Global, last accessed February 18, 2025.)
Here in the U.S., Natural Health Trends sells personal care, wellness, and quality of life products under the “NHT Global” brand.
Positive Cash Flow From Operations in Q4 & 2024
For the fourth quarter ended December 31, 2024, Natural Health Trends reported revenue of $10.8 million, unchanged from the same period last year, Revenue from its most important region, Hong Kong, increased nine percent sequentially and seven percent on an annual basis. Source: “Natural Health Trends Reports Fourth Quarter and Full Year 2024 Financial Results,” Natural Health Trends Corp, February 5, 2025.)
The company’s fourth-quarter net income slipped to $176,000, or $0.02 per share, from $358,000, or $0.03 per diluted share, in the fourth quarter of 2023.
The number of Natural Health Trends’ active members was 30,870, unchanged from the third quarter but down five percent from 32,410 in the fourth quarter of 2023.
The company’s net cash provided by operating activities was $88,000, compared to net cash used in operating activities of $69,000 in the fourth quarter of 2023. Before tax installment payments, cash provided by operating activities was $602,000 in 2024, versus cash used in operations of $1.2 million a year ago.
Total cash, cash equivalents and marketable securities were $43.9 million as of December 31, 2024, down from $46.3 million as of September 30, 2024.
For the full year, Natural Health Trends’ revenue decreased two percent to $43.0 million, while its operating loss improved to $1.3 million from $1.7 million in 2023. Net income was up slightly at $572,000, or $0.05 per share, compared to $568,000, or $0.05 per share, in 2023.
Management noted that its results for the fourth quarter and the full year were “tempered by the performance of other markets, particularly Taiwan and North America,” where Natural Health Trends implemented strategic price adjustments in 2023 and offered fewer product promotions throughout 2024.
However, these changes position the company to reap the “long-term benefits of safeguarding margins and reinforcing market discipline.”
NHTC Stock: Quarterly Dividend of $0.20/Share Maintained
Because of its healthy balance sheet, NHTC stock has been able to provide shareholders with a reliable dividend since 2014. (Source: “Dividend History,” Nasdaq, last accessed February 18, 2025.)
Most recently, in February, the company paid a quarterly cash dividend of $0.20 per share, or $0.80 on an annual basis, for a high-yield dividend of 16.46%.
Reinvesting dividends can really help juice a company’s stock returns. Since the start of 2025, the company has reported total returns of 9.4%. Had you elected to take that first-quarter dividend in cash, the return would slip to 5.2%.
Again, NHTC stock has performed well in 2025, rising 9.4%. It has significantly outpaced the S&P 500, which has climbed 4.2%. Trading at $4.86 per share, the stock is trading down 34% from its 52-week high of $7.40, which shows there’s potential for solid gains if the conditions are right.
We could see NHTC stock move higher over the coming quarters if Natural Health Trends is able to maintain a consistent or growing number of active distributors, who help increase revenue and earnings.
In the meantime, shareholders are on the receiving end of a reliable, ultra-high-yield dividend.
Chart courtesy of StockCharts.com
The Lowdown on NHTC Stock
Natural Health Trends Corp is a direct-selling company with a history of providing investors with a reliable dividend and special distributions. While some investors on Main Street may not be familiar with Natural Health Trends or even the world of direct selling, there are 28 institutions holding 10.09% of all outstanding shares that are comfortable with what this company has been doing.
The three biggest holders of NHTC stock are Renaissance Technologies LLC, BlackRock Inc, and The Vanguard Group, Inc. A far greater percentage of 35.1% of all outstanding shares are held by insiders. And that larger insider stake should motivate management to perform well over the long haul. (Source: “Natural Health Trends Corp. (NHTC),” Yahoo! Finance, last accessed February 18, 2025.)
