Bottom line, there is an opportunity to invest in Pollard at the start of a revolutionary growth story, all while PollardвЂ™s core business continues to produce profits. As Pollard continues to grow its business, I think we can expect dividend growth to increase. Pollard pays a modest dividend, with the yield currently 0.44%. However, at the start of 2022 it was trading nearly 50% off those highs, and it now looks a lot more attractive. In the low $60 range at the time, Pollard was likely way ahead of itself. The company, like many other small-cap options in Canada and the US had a 'too much, too soon' price runup in mid-2021. Even though iLottery is just starting, Pollard Banknote has already proven to be a fantastic investment for shareholders. If iLottery takes off like we think it will, Pollard is going to grow into a much larger company. However, in 2022 analysts expect some big things from Pollard, with revenue expected to grow by 20%+ and earnings to grow by more than 25%.Д«ut that should just be the beginning. Growth has slowed as of late, primarily due to the pandemic. Over the last 5 years, Pollard has grown revenue in the mid-double digits annually, and it has grown its bottom line even faster, with earnings per share growth in the mid 20% range over the same timeframe.

The growth in PollardвЂ™s base instant lottery ticket printing business, and its new iLottery business, will ensure the company keeps up its excellent growth. We think itвЂ™s inevitable at this point that eventually every jurisdiction that runs lotteries now will add iLottery and given NeoPollardвЂ™s success so far, I expect NeoPollard is going to win a lot of business as states and countries legalize it. This is a 50-50 joint venture with NeoGames that is focused solely on the iLottery space, giving states the ability to operate lotteries on the internet. The most exciting part about the company is its 50% ownership of NeoPollard Interactive. Pollard has grown its instant lottery ticket revenues at a 9% compound annual growth rate since 2012.

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