Robert Half: Buy This 10% Dividend Stock With Strong Upside Potential

David B. McMillan550 FollowersFollow5ShareSavePlay(17min)CommentsSummaryRobert Half shares are substantially undervalued, giving the stock asymmetric upside potential at current levels.I believe RHI's ~10% dividend is sustainable, while a fair value per share of $49 is more than double the current share price of ~$24.Substantial short interest of 23.5% creates the potential for a short squeeze if sentiment improves.I believe AI-related concerns are overstated, while staffing industry tailwinds are forming to create a cyclical recovery for RHI and the staffing industry broadly.The company's network of vetted candidates creates a new moat in the current landscape of AI-generated applications. damircudic/E+ via Getty Images Introduction Since I last wrote about Robert Half Inc. (RHI), the stock is down nearly 17%, while the total return has been partially cushioned by dividends (though still down 15%). In that articleThis article was written byDavid B. McMillan550 FollowersFollowMy name is David B McMillan and I am an investor interested in fundamental valuation. My philosophy is fundamental investing - I seek to identify underpriced securities relative to their potential future cash flows. I also use tactical allocation, investing more aggressively when equity prices are lower, and more conservatively when they are higher. I have a BS in Physics and BA in Philosophy from UCSB, and am currently a CFA Level 2 candidate. I am mostly interested in covering stocks in the aerospace and defense sector, but I am also interested in retail and tech companies. I have a 12 year investing track record, with documented investments in AI, tech, and crypto themes before they were widely understood - NVDA in 2017, 8000 percent gain; PLTR at IPO, 1870 percent gain; AMD in 2017, 3700 percent gain; TSLA in 2016, 3400 percent gain. Had all of Mag 7 in my portfolio by 2018, before those stocks were called the Mag 7. My current demo portfolio, started in April 2025 with about $8k of my my own capital, is so far achieving a Sharpe ratio of 3.49 compared to IVV of 2.42 in the same time period. My average time-weighted return is 0.30 percent per day vs IVV at 0.14 percent per day.Analyst’s Disclosure: I/we have a beneficial long position in the shares of RHI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.