Topic: How To Invest

Dividend Advisor Hotline – Friday, September 15, 2017

Article Excerpt

RUSSEL METALS INC., $27.73, 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. The company pays a quarterly dividend of $0.38 a share for an annual rate of $1.52; the stock yields a high 5.5%. Russel has just acquired Color Steels Inc. for an undisclosed amount. Color Steels is a service-centre operation that processes and distributes pre-painted metals from its facilities in Thornhill, Ontario, and Laval, Quebec. Revenues for Color Steel over the last year were about $45 million. That’s small in comparison to Russel’s annual sales of over $2.6 billion. But those sales will add immediately to profits and lets Russel expand into the Canadian market for processed pre-painted flat-rolled products. The company’s dividend has grown an average of 1.7% annually over the last 5 years. Its TSI Dividend Sustainability Rating is Above Average. OUR RECOMMENDATION: Russel Metals is a buy. Russel Metals recent coverage Hotline for…