Topic: How To Invest

Dividend Advisor Hotline – Friday, August 11, 2017

Article Excerpt

RUSSEL METALS INC., $26.07, Toronto symbol RUS, is one of North America’s largest metal distributors, serving 28,000 clients at 51 locations in Canada and 12 others in the U.S. Russel pays a quarterly dividend of $0.38 a share for an annual rate of $1.52; the stock yields 5.8%. In the three months ended June 30, 2017, the company’s revenue rose 30.9%, to $816.5 million from $623.1 million a year earlier. The increase came from higher shipments and selling prices. As well, sales for Russel’s energy-products business rose 68%. That operation supplies pipes for oil and gas drillers. Overall earnings in the quarter were $32.5 million, or $0.52 a share. That’s a 98.2% increase from the $16.4 million, or $0.27 a share, a year earlier. The company benefitted from rising steel prices; they sharply increased the value of Russel’s inventory and its profit margins. The company holds cash of $164.3 million, or $2.65…